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Underinsurance

   Also found in: Dictionary/thesaurus, Financial 0.01 sec.
Underinsurance
A generic term for health insurance policies that require large out-of-pocket payments, and provide suboptimal coverage for common conditions

underinsurance
Managed care A generic term for insurance policies that require large out-of-pocket payments, and provide suboptimal coverage for common conditions Examples Lack of coverage for catastrophic medical expenses, pre-exisiting condition clauses, benefits-not-provided clauses, deductibles, coinsurance. See Underinsured.


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A recent insurance-to-value analysis of a reinsurer's book of business showed underinsurance in fully 100% of the cedent portfolios analyzed.
Like other non-group policies, high-risk pools typically have high premiums and deductibles, resulting in underinsurance for many participants.
On the other hand, average clauses, which adjust claim amounts relative to any underinsurance of property values, are rigorously applied.
 
 
 
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