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Related to co-insurance: reinsurance


In insurance, a structure in which the policyholder and the insurer split the responsibility for paying for covered items. Coinsurance is most common with health and real estate insurance. For example, if a policyholder has surgery that is covered under the plan, coinsurance might require the policyholder to pay 20% and the insurer to pay the remaining 80%. This helps the insurer control costs by avoiding flippant claims, but also provides most of the coverage needed for the policyholder.


When your healthcare insurance has a coinsurance provision, you and your insurer divide the responsibility for paying doctor and hospital bills by splitting the costs on a percentage basis.

With an 80/20 coinsurance split, for example, your insurer would pay 80%, or $80 of a covered $100 medical bill, and you would pay 20%, or $20.

Some policies set a cap on your out-of-pocket expenses, so that the insurance company covers 95% to 100% of the cost once you have paid the specified amount.

Coinsurance may also apply when you buy insurance on your home or other real estate. In that case, insurers may require you to insure at least a minimum percentage of your property's value -- usually about 80% -- and may reduce what they will cover if you file a claim but have failed to meet the coinsurance requirement.

Coinsurance also describes a situation in which two insurers split the risk of providing coverage, often in cases when the dollar amount of the potential claims is larger than a single insurer is willing to handle. This type of coinsurance is also called reinsurance.


A method of dividing financial responsibility for a loss between the owner and the insurance company.Coinsurance clauses exist within insurance contracts as a type of penalty for an owner who decides to gamble about the size of any potential loss and insure property for less than the full value in order to keep premiums low.They usually provide that an owner may not collect full policy limits for a loss unless the property has been insured to at least 80 percent of its value.
References in periodicals archive ?
The first is the year's probable earnings determining whether or not operation of the co-insurance or contribution clause will reduce the insured liability.
As a result, the insured face expensive co-insurance and co-pays, prior authorization requirements, high up-front costs and quantity limits.
The intent of the co-insurance clause is to take from each according to his ability in order to return to each according to his need.
Co-insurance and aggregators will be the major issues shaping pet insurance- Co-insurance clauses will become more mainstream as the industry seeks to control claims inflation - Aggregators are focusing more on pet insurance, but plenty of room for growth remains - The need to compare different policies is supporting an increase in transparency - Insurers are targeting the lower end of the market with accident- and injury-only policies - Accident-only policies can be used to upsell to customers conducting research on aggregators - Maturing books of business will force insurers to focus on profitability instead of market share - Product penetration needs to increase if pet insurance is to be a sustainable market
Deposits and Guarantees required: Liability insurance with a minimum coverage of 10 million EUR for persons and property maximizes 2-fold and 250 thousand for property damage, as well as the co-insurance of machining damage with a minimum coverage of 20 000 EUR and the insurance coverage under the Environmental Damage Act.
Unum America will cede to Tailwind Re on a modified co-insurance basis a defined block of business consisting of 23,036 of Unum America's seasoned group long-term disability (LTD) claims representing approximately $1.
On big deals, co-insurance is in the best interest of the client," explained May.
Anthem Blue Cross and Blue Shield in Missouri patients and others with accepted insurance plans can now visit any of these clinics and pay just their co-pay or co-insurance.
Deposits and Guarantees required: Public liability insurance with a minimum coverage of 2,000,000 EUR for personal injuries and property maximizes 2-fold and 2 million EUR for property damage as well as the co-insurance of machining damage with a minimum coverage of EUR 200 000 and the insurance coverage under the Environmental Damage Act in a in a Member State of the EU or a State party to the Agreement on the European Economic Area approved insurance companies.
Simple in eliminating co-insurance and the deductible on most outpatient services, with no 'gotchas.
Deposits and Guarantees required: Maximizes proof of liability insurance with a minimum coverage of 5,000,000 EUR for persons and property 2-fold and 100 000 EUR for damage to property, as well as the co-insurance of machining damage with a minimum coverage of 20 000 EUR and the insurance coverage under the Environmental Damage Act.
Specifically, APP provides physician offices with one, simplified process to collect authorization from patients for both one-time and recurring patient payments, including co-payments, co-insurance and deductibles.