Question

Societies have different forms of co-insurance. In your home country what are the most common methods of co-insurance? Is co-insurance extensive?

Answer 1

In the insurance market of United States, co-insurance refers to the joint assumption of risk among the insurer and the insured, thus sharing of risks among two or more title insurance companies. Co-insurance is the amount often expressed as a fixed percentage; an insured is required to pay against a claim after the deductible is satisfied.

One of the most common co-insurance breakdowns in the health insurance is the method of 80/20 split. Under this co-insurance plan, 20% of medical costs are the responsibility of insured is and insurer pays the remaining 80%. But such terms only apply after the insured has reached the term's out-of-pocket deductible amount. In United Nations the majority of health insurance policies include an out-of-pocket maximum that limits the sum of amount the insured pays for care in a specific period.

In property insurance, the most commonly issued coinsurance percentage is 80% however it can be as high as 100%, which would result to the greatest penalty for underreporting. The penalty is based on the amount underreported and a percentage stated within the policy.

In title insurance, for partial losses, they need the insured carry a percentage of the risk of loss in two cases. Firstly the insurer will pay only 80% of the loss when the insured did not insure its title for at least 80% of its market value at the time the policy was issued. Secondly when after the policy is issued then any improvements constructed on the property would result to an increase in the property's value by at least 20% above the amount of the policy. In such circumstances, the insurer will pay a percentage of the claim that equal to the ratio of 120% of the amount of insurance purchased divided by the total of insurance and the improvements costs.

Yes, co-insurance today has extensive international experience