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Waiver Of Coinsurance Clause

What is 'Waiver Of Coinsurance Clause '

Language in an insurance policy that says the insurance company will not require application of the part of the policy that divides responsibility for an insured loss between the insurance company and the policyholder. The coinsurance clause is usually only waived for small losses, such as losses under $10,000. Coinsurance helps to guard against the moral hazard that the policyholder will not purchase sufficient insurance to cover a total loss in order to save money on insurance premiums.

Explaining 'Waiver Of Coinsurance Clause '

A coinsurance clause requires the policyholder to insure a certain minimum percentage of the property's actual value, such as 80%. Thus, if a building was worth $200,000, the property owner would have to purchase $160,000 of insurance on it. In the event of a total loss, the policy would pay $160,000 and the building owner would be responsible for the remaining $40,000. If, however, the property were really worth $300,000, the building should have been insured for at least 80% or $240,000. Since the owner is only insured for $160,000 when he should be insured for $240,000, he is underinsured and would face a penalty in the event of a loss, unless he has a waiver of coinsurance clause.


Further Reading


Everyone Pays the Price When Healthcare Providers Waive Patients' Co-Insurance Obligations
heinonline.org [PDF]
… by merely waiv- ing patient out-of-pocket costs and increasing their charges to off-set the amounts waived … where the co-payment may be a minimal amount, it is well-established that waiver of co … Everyone Pays the Price When Healthcare Providers Waive Patients' Co-Insurance …

Using project finance to fund infrastructure investmentsUsing project finance to fund infrastructure investments
onlinelibrary.wiley.com [PDF]
… by merely waiv- ing patient out-of-pocket costs and increasing their charges to off-set the amounts waived … where the co-payment may be a minimal amount, it is well-established that waiver of co … Everyone Pays the Price When Healthcare Providers Waive Patients' Co-Insurance …

The ACA's 2017 State Innovation Waiver: Is ERISA a Roadblock to Meaningful Healthcare ReformThe ACA's 2017 State Innovation Waiver: Is ERISA a Roadblock to Meaningful Healthcare Reform
heinonline.org [PDF]
… by merely waiv- ing patient out-of-pocket costs and increasing their charges to off-set the amounts waived … where the co-payment may be a minimal amount, it is well-established that waiver of co … Everyone Pays the Price When Healthcare Providers Waive Patients' Co-Insurance …

The Application of Article 101 of the Treaty of Lisbon to forms of horizontal collaboration in the Financial Services SectorThe Application of Article 101 of the Treaty of Lisbon to forms of horizontal collaboration in the Financial Services Sector
qmro.qmul.ac.uk [PDF]
… by merely waiv- ing patient out-of-pocket costs and increasing their charges to off-set the amounts waived … where the co-payment may be a minimal amount, it is well-established that waiver of co … Everyone Pays the Price When Healthcare Providers Waive Patients' Co-Insurance …

Risk transfer via energy-savings insuranceRisk transfer via energy-savings insurance
www.sciencedirect.com [PDF]
… by merely waiv- ing patient out-of-pocket costs and increasing their charges to off-set the amounts waived … where the co-payment may be a minimal amount, it is well-established that waiver of co … Everyone Pays the Price When Healthcare Providers Waive Patients' Co-Insurance …

Invisible women: Why an exemption for hobby lobby would violate the establishment causeInvisible women: Why an exemption for hobby lobby would violate the establishment cause
heinonline.org [PDF]
… by merely waiv- ing patient out-of-pocket costs and increasing their charges to off-set the amounts waived … where the co-payment may be a minimal amount, it is well-established that waiver of co … Everyone Pays the Price When Healthcare Providers Waive Patients' Co-Insurance …


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