coinsurance

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Related to coinsurance clause: co-insurance

coinsurance

(kō′ĭn-sho͝or′əns)
n.
1. Insurance held jointly by two or more insurers.
2. A form of insurance in which a person insures property for less than its full value and agrees to be responsible for the difference.
3. A sum of money paid by a patient to a health care provider after a health insurance company has paid a contractual amount for a covered service, usually a fixed percentage of costs. Coinsurance usually applies after an annual deductible has been paid.

co·in·sur·ance

(kō-in-shŭr'ăns)
The amount or percentage the insured is responsible for after the deductible has been met.
See also: copayment, cost sharing

co·in·sur·ance

(kō-in-shŭr'ăns)
The amount or percentage the insured is responsible for after the deductible has been met.

coinsurance,

n 1. a means of sharing, dividing, or splitting the cost of dental services between the dental plan and the insured patient. A common division is 80/20. This means the insurance company will pay 80% of the cost of the dental service and that the patient will pay 20%. Percentages vary and may be applied to scheduled or usual, customary, and reasonable fee plans.
2. a provision of a dental benefits program by which the beneficiary shares in the cost of covered services, generally on a percentage basis.
3. the percentage of a covered dental expense that a beneficiary must pay (after the deductible is paid). A typical coinsurance arrangement is one in which the third party pays 80% of the allowed benefit of the covered dental service and the beneficiary pays the remainder of the charged fee. Percentages vary and may apply to a table of allowance plans; usual, customary, and reasonable plans; and direct reimbursement programs.
coinsurance clause,
n a provision in an insurance contract stipulating that the insurer will pay a specified share of dental expenses covered by the plan.
References in periodicals archive ?
Coinsurance clauses require insureds to insure property for a high percentage (usually 80%) of the replacement cost if they are to recover the full amount of a partial loss--that is, a loss of or damage to part of the property insured.
Although some states have passed laws voiding coinsurance clauses, they remain a source of distress to real estate companies who frequently encounter the restriction following a loss.
It does not replace the coinsurance clause as does the agreed value coverage option.
One source of possible problems is the coinsurance clause in time element forms.
Ask your agent to explain the coinsurance clause and its relationship to your total property insurance limit.