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Which of the following is true of coinsurance? A. It allows theinsured to pay an...

Which of the following is true of coinsurance? A. It allows the insured to pay an extra premium initially in exchange for a guaranteed option to buy more insurance at certain specified times later. B. It excuses the insured from paying premiums if he or she becomes disabled. C. It's rarely found in property insurance policies. End of exam D. It's a provision under which the insurer and the insured share costs, after the deductible is met, according to a specific formula.

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Expert Solution

The correct option is

D. It's a provision under which the insurer and the insured share cost, after the deductible is met, according to a specific formula.

In this approach the insurer shared larger portion of sharing the cost while the insured share lower part.

keosha answered 2 years ago
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