Final answer:
The question pertains to a situation where the insured has suffered a compensable loss under their crime policy form, indicating that the insured and insurance company will share the costs through coinsurance.
Step-by-step explanation:
The subject in question relates to a scenario where an insured has suffered a loss that is covered by their crime policy form. In the context of insurance, when the policyholder experiences a loss, coinsurance is a concept where the policyholder and the insurance company share the cost of the loss. Specifically, the insured pays a predetermined percentage of the loss, while the insurance company covers the remaining cost. This arrangement is common in various types of insurance policies such as those covering medical expenses, car damage or theft, and damage or burglary to a dwelling. The idea is to share the risk between the insurance company and the policyholder, thus mitigating moral hazard, which is the tendency of an insured party to take greater risks because the negative consequences are partially borne by the insurer.