The coinsurance formula settles a partial loss by multiplying the loss by:

a.Insurance required over insurance carried
b.The property value over insurance carried
c.Insurance carried over the property value
d.Insurance carried over insurance required

Giải thích

The fraction is the amount of insurance carried divided by the amount required, which is the coinsurance percentage times the property's value, and that fraction is applied to the loss. Flipping the fraction so the required amount sits on top produces a payment larger than the loss, which indemnity forbids. Dividing by full value rather than the required amount understates every payment.

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Đội ngũ PrepPass · Đối chiếu với California Personal Lines Insurance License Exam · Quy trình kiểm tra
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