Business and Personal Finance Dictionary

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• COINSURANCE
  
  A provision in an insurance policy that requires the insured to carry an amount of insurance equal to a certain specified percentage of the value of the insured property. The coinsurance provision, or clause, provides for full payment of losses up to the amount of the policy if the amount of insurance carried equals the specified coinsurance percentage. If the amount of insurance carried does not equal the specified coinsurance percentage, the losses are shared between the insurer and the insured even if the loss is below the amount of the policy.
  
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