Coinsurance Is Common in Property Insurance as a Means of Sharing

question 11

True/False

Coinsurance is common in property insurance as a means of sharing risk between the insurer and insured.

---

Definitions:

Petty Cash Account

A small amount of cash kept on hand to pay for minor or incidental expenses.

Fund Replenishing

The process of adding money to a fund to restore its level after expenses have been incurred.

Making Payments

This process involves the transfer of funds from one party to another to settle a financial obligation or purchase.

Cash Equivalents

Investments with a short duration, easily turned into cash, and having an original maturity of no longer than three months, which are both highly liquid and quickly convertible into precise cash sums.