COINSURANCE Meaning and
Definition
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Coinsurance is a term commonly used in insurance policies, particularly property and health insurance plans. It refers to the sharing of expenses between the policyholder and the insurance provider after the deductible has been met. In other words, coinsurance is the percentage of the covered expenses that the insured must pay out of pocket, while the insurance company covers the remaining portion based on a predetermined ratio.
Typically expressed as a ratio such as 80/20 or 70/30, coinsurance represents the percentage split between the policyholder and the insurer. For instance, if the coinsurance ratio is 80/20, the policyholder will be responsible for paying 20% of the expenses, while the insurance company will cover the remaining 80%. The insured's portion is usually referred to as the coinsurance amount.
Coinsurance is designed to encourage policyholders to be cost-conscious when seeking medical care or making property repairs. Generally, a higher coinsurance amount can result in lower monthly premiums, as the policyholder is sharing a greater portion of the expenses. However, it also means that the insured may have to pay a larger sum out of pocket if a claim arises.
Coinsurance applies to covered expenses beyond the deductible, which is the amount the policyholder must pay before insurance coverage comes into effect. It is important for individuals to review their insurance policies carefully to understand the coinsurance arrangements and limits specific to their coverage.
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Insurance jointly by two or more companies.
A practical medical dictionary. By Stedman, Thomas Lathrop. Published 1920.
Top Common Misspellings for COINSURANCE *
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
Other Common Misspellings for COINSURANCE
Etymology of COINSURANCE
The word "coinsurance" is derived from a combination of two root words: "coin" and "insurance".
1. Coin: The term "coin" has Old French and Latin origins. It comes from the Old French word "coigne", meaning "a wedge or cornerstone". This term was adopted from the Latin word "cuneus", which also referred to "a wedge". Over time, "coin" began to be associated with money, specifically metallic pieces used as a medium of exchange.
2. Insurance: The term "insurance" originated from the Latin word "securus", which means "secure" or "safe". It later evolved into "assurance" in Middle English, referring to a practice in which risks were divided among a group of individuals. Eventually, "assurance" transformed into "insurance" as it is known today.
Similar spelling words for COINSURANCE
- concurrently,
- concurrence,
- Cownose Ray,
- concurring,
- concurrent,
- conjurer,
- conjuration,
- conjuror,
- conquerable,
- congruence,
- insurance,
- concordance,
- conquering,
- conquered,
- concourse,
- coinsure,
- conqueror.
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