Coinsurance Limit
Definition of "Coinsurance limit"
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.
Popular Insurance Terms
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Professional designation earned after the successful completion of three national examinations given by the insurance institute of America (IIA). Covers such areas of expertise as ...
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