Which One of the Following Explains the Effect of a Co-Insurance

question 103

Multiple Choice

Which one of the following explains the effect of a co-insurance clause?

• A) A co-insurance clause provides for more than one person paying the premium.
• B) A co-insurance clause provides for the insurance claim to be split between two or more beneficiaries.
• C) A co-insurance clause provides for the insured to assume part of the responsibility for any loss.
• D) A co-insurance clause provides for several different properties being insured under the same policy.
• E) A co-insurance clause provides for the insurance company arranging their own insurance on a large policy.

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Definitions:

Cash Flow Amounts

The net amount of cash and cash-equivalents being transferred into and out of a business.