Question

A condition that states that the insurer will only responsible for a proportional share of an insured loss when the insured also has other insurance written according to the same plan, terms and conditions is known as

A) Excess of Loss
B) Concurrent Causation
C) Pro Rata
D) Subrogation

Answer 1

The condition is known as coinsurance, where the insurance company only pays a proportional share of an insured loss, and the policyholder covers the remaining cost.

Step-by-step explanation:

The condition that states that the insurer will only be responsible for a proportional share of an insured loss when the insured also has other insurance written according to the same plan, terms, and conditions is known as coinsurance. In coinsurance, the insurance policyholder pays a percentage of the loss, and the insurance company pays the remaining cost. For example, if the insurance policy covers 80% of the costs of repairing a home after a fire, the homeowner would pay the remaining 20%.