What is the term for the insured's share of a claim in a coinsurance context?

What is the term for the insured's share of a claim in a coinsurance context?

• A. Deductibles
• B. Exclusions
• C. Conditions
• D. Endorsements

Answer: (A)

Deductibles are the portion of a loss the insured must pay out of pocket before the insurer contributes anything. In a coinsurance setup, the insurer’s payment is then calculated based on the remaining loss and the level of coverage carried, but the insured’s initial share is still the deductible. Exclusions tell you what isn’t covered, conditions cover duties and claim procedures, and endorsements are policy changes—none of these describe the insured’s share of a claim.

Deductibles are the portion of a loss the insured must pay out of pocket before the insurer contributes anything. In a coinsurance setup, the insurer’s payment is then calculated based on the remaining loss and the level of coverage carried, but the insured’s initial share is still the deductible. Exclusions tell you what isn’t covered, conditions cover duties and claim procedures, and endorsements are policy changes—none of these describe the insured’s share of a claim.