US: 1) A provision under which an insured who carries less than the stipulated percentage of insurance to value, will receive a loss payment that is limited to the same ratio which the amount of insurance bears to the amount required; 2) a policy provision frequently found in medical insurance, by which the insured person and the insurer share the covered losses under a policy in a specified ratio, i.e., 80 percent by the insurer and 20 percent by the insured.
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MEDICAL,USA: 1. A cost-sharing requirement under a health insurance policy providing that the insured will assume a percentage of the costs for covered services. Also referred to as coinsurance payment, copayment, cost sharing, or percentage participation. 2. In the Medicare program, the amount that Medicare will not pay. The Medicare beneficiary or the beneficiary’s supplemental insurance plan is responsible for the yearly cash deductible and the portion of the reasonable charges (20%). 3. In the Medicaid Qualified Medicare Beneficiary (MQMB) program, the amount of payment that is above the rate that Medicare pays for medical services. The state assumes responsibility for payment of this amount.
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Coinsurance has two rather distinct meanings depending on whether it is being used in property insurance or health insurance.Property InsurancePolicyholders are usually required to carry an amount of insurance that is at least a certain percentage of the total value of the property (often 80%). The purpose of this requirement is that most property losses are small and, therefore, most policyholders would carry only a small amount of insurance to cover expected claims. To counter this, insurance companies require 80% of value or more and penalize policyholders who carry less than 80% when a claim is made.

For example, if an insured has a $100,000 building, is required to carry at least $80,000 of coverage (80%) but insures for only $60,000, there will be a penalty when there is a claim. If the claim is for $50,000 the insurance company will use the “”did over should”” fraction to determine the amount to be paid. The insured carried $60,000 but should have carried at least $80,000. Thus, $60,000/$80,000 equals 75%. The company calculates the settlement as follows: .75 x $50,000 = $37,500. The insured suffers a $12,500 penalty for not insuring to 80% of value. The $12,500 is the insured’s coinsurance.

Health Insurance

For health insurance, the coinsurance is the percentage of covered health costs the insured will pay in a year after the deductible. For example, if the coinsurance provision of the health policy is 20% the insured will pay this percentage of covered claims and the insurance company will pay 80%. Usually there is a ceiling or a maximum the insured will be “”out-of-pocket.”” At that point the insurance company pays 100% for the balance of the year.

For example, after a $500 deductible, the insured pays 20% until the claims total $5,500. At this point the insured is out the $500 deductible and another $1,000 (20% of $5,000). If the policy states that the maximum out-of-pocket is $1,500, then the insurance company begins to pay 100% of covered claims for the remainder of the year.

US: A form of automobile insurance that provides for reimbursement for loss to a covered automobile due to its colliding with another vehicle or object or the overturn of the automobile. This covers only damage to the automobile itself as “auto” is defined in the policy.
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A form of automobile insurance that provides for reimbursement for loss to a covered automobile due to its colliding with another vehicle or object or the overturn of the automobile. This covers only damage to the automobile itself as &#8220auto&#8221 is defined in the policy.
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Insurance against loss to the insured property caused by striking or being struck by an object: including loss caused by upset.
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MEDICAL,USA: Optional automobile insurance coverage that pays for damages to the insured’s car caused by a collision with another car or object or by rolling the car over. Frequently this type of insurance is required if an individual has taken out a car loan.
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US: Protection against loss resulting from any damage to the policyholder’s car caused by collision with another vehicle or object, or by upset of the insured car, whether it was the insured’s fault or not.

A crime insurance policy that is designed to meet the needs of organizations other than financial institutions (such as banks). A commercial crime policy typically provides several different types of crime coverage, such as
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A crime insurance policy that is designed to meet the needs of organizations other than financial institutions (such as banks). A commercial crime policy typically provides several different types of crime coverage, such as employee dishonesty coverage forgery or alteration coverage computer fraud coverage funds transfer fraud coverage kidnap, ransom, or extortion coverage money and securities coverage

A broad commercial policy that covers all liability exposures of a business that are not specifically excluded. Coverage includes product liability, completed operations, premises and operations, and independent contractors. Commercial liability policy drafted by the Insurance Services Office containing two coverage forms, an occurrence form and a claims-made form.

A package insurance policy that provides both liability and property coverage for businesses and other organizations.
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Insurance coverage for a commercial organization that covers at least two of the following: Commercial Property, Business Crime, Business Automobile, Boiler and Machinery, Commercial General Liability, Inland Marine, Farmowners, and Ranchowners.

A special ownership form requiring that one half of all property earned by a husband or wife during marriage belongs to each. Community property laws do not generally apply to property acquired by gift, by will, or by descent.

A situation in which an insured requests premium quotations on its insurance program from a number of agents/brokers. In some instances, insureds provide agents/brokers with detailed specifications upon which to base their quotations. Under other circumstances, the agents/brokers present proposals for coverage reflecting their own ideas for structuring the insured’s program.
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A situation in which an insured requests premium quotations on its insurance program from a number of agents/brokers. In some instances, insureds provide agents/brokers with detailed specifications upon which to base their quotations. Under other circumstances, the agents/brokers present proposals for coverage reflecting their own ideas for structuring the insured&#8217s program.

Liability arising out of faulty work performed away from the premises after the work or operations are completed. Applicable to contractors, plumbers, electricians, repair shops, and similar firms.

Protection against loss resulting from damage to the insured auto, other than loss by collision or upset.

Boiler and machinery (BM) coverage that applies to all insurable objects. There are two types
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Boiler and machinery (BM) coverage that applies to all insurable objects. There are two types standard comprehensive coverage applies to all objects except production machinery extended comprehensive coverage applies to all objects including production machinery. Contrasts with blanket group BM coverage, which applies to all objects within specified categories of objects, and with coverage applying only to individually described objects.