Overinsurance
Situation in which insurance benefits exceed the actual loss of an insured. Overinsurance can be a problem for the insurer because it may tempt the insured to make a false claim in order to profit financially. Various safeguards are designed to prevent overinsurance. For example, in group health insurance, companies break down benefits paid by the primary carrier and the secondary carrier through coordination of benefits. Still, some types of coverage, particularly disability income insurance, are subject to overinsurance abuse.
Popular Insurance Terms
Written evidence given to a policyowner by an insurance company or insurance agency that it has received a premium. ...
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Agent who is licensed and who markets and services insurance policies in a state in which he or she is not domiciled. ...
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