Definition of "Coinsurance limit"

Debbie Manning real estate agent
Debbie Manning, Real Estate Agent Southside Realty

In a mercantile open-stock burglary insurance policy, the dollar amount of coverage as required by the COINSURANCE clause. This dollar amount is the MAXIMUM PROBABLE LOSS (MPL) of merchandise that the insurer estimates could result from a single burglary. The indemnification of the insured merchant cannot exceed the lesser of this coinsurance limit or the COINSURANCE PERCENTAGE of the total dollar value of the merchandise that has been insured.

 

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