Coinsurance (UT)

James failed to comply with the 80% coinsurance requirement on his homeowners policy. What is the consequence?

The main purpose of the coinsurance rule found in property insurance policies is to encourage the insured to 

The replacement cost of Carlos’ home is $500,000. His homeowners insurance policy has an 80% coinsurance clause. Carlos insured his home for $200,000. A fire caused $100,000 of damage. How much will his policy pay for the loss?

The replacement cost of Isabella’s home is $1,000,000. Her homeowners insurance policy has an 80% coinsurance clause. Isabella insured her home for $600,000. Fire completely destroyed Isabella’s home, causing a $1,000,000 loss. How much will her policy pay for the loss?

The replacement cost of Thomas’ home is $1,000,000. His homeowners insurance policy has an 80% coinsurance clause. Thomas insured his home for $900,000. Wind caused $100,000 damage to his home. How much will the policy pay for this loss?

The term exposure means the amount of risk, while the limit of insurance is

What is the coinsurance formula to determine the amount paid for partial losses?

Which is NOT true about coinsurance?

Which of the following types of policies is likely to have a coinsurance requirement?