Coinsurance Clause Explanation

Where a policy contains a coinsurance clause, the insurer shall notify the policy-holder of its existence, such notification to include the following information:

(a)The name of the Insured;

(b)The policy number of the policy and the effective date thereof;

(c)The following notice in type of which the face is not smaller than six

(6)points: COL6/24/2021 CH. 18 THE CONTRACT OF INSURANCE “Important, this policy contains a coinsurance clause. If the amount of insurance purchased is not equal to the cash or replacement cost of your insured property then the settlement you received arising from future losses will not be sufficient to replace the loss you have suffered. It is your responsibility as the insured to make certain the insured value, as stated below, is equal to cash value or full replacement cost of your insured property if you desire full protection.”

(d)The coinsurance clause in its entirety is a type of which the face is not smaller than six

(6)points;

(e)The insured value of the property.