The Effect of the 'Co-Insurance' or 'Average' Clause Included in a House

question 16

Multiple Choice

The effect of the 'co-insurance' or 'average' clause included in a house and contents policy is to:

• A) increase payouts to policyholders if they are over-insured at the time of making a claim.
• B) decrease payouts to policyholders if they are under-insured at the time of making a claim.
• C) both a and b .
• D) ensure that a claim rejection arising from late payment can be overturned by the courts.

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