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coinsurance |
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Your policy has a $500 deductible with an 80/20 coinsurance clause with a maximum out of pocket $2000. Absent the agreed value provision, if, at the time of loss, it is determined that the amount of insurance is less than the limit required by the coinsurance clause for all locations, the insured is penalized or considered to be coinsured (partners with the insurer). Until recently, there was either no coinsurance clause or a significantly smaller coinsurance clause. |
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