Introduction
Co-insurance is the insurance on the same interests, the same risk of entering into a co-insurance contract between the insured and the number of insured people. Co-insurance by the insurance if the subject is divided into different places with the co-insurance and co-insurance co-insurance underwriter in the business area. With the co-insurance refers to the subject matter of insurance co-insurance co-insurance underwriter operating in the region; off-site co-insurance refers to the subject matter of insurance co-insurance underwriters co-insurance operations outside the area.
Several insurer may issue insurance policies on behalf of a particular insurer, each insurer to assume the insurance liability in accordance with the agreed proportion. Although the insurance practice, only to be insured with an insurance man approached, but not all of the insurer; but in the law, the insured relationship remains directly with all insurers. Applications are dangerous coinsurance and reinsurance principles of decentralized, thus Underwriters guarantee insurance business to break even and sound management, the type and extent of the risk and assume the amount of insurance law of large numbers to use as much as possible, to expand its range of dispersion dangerous , reinsurance and co-insurance is the most effective means. Appears coinsurance earlier than reinsurance, and reinsurance rich accommodative, but with respect to reinsurance, the co-insurance obvious shortcomings, one is required co-insurance must at the same place, only the Lloyd's insurance market in order to meet this requirement other insurance market difficult to do; the second is co-insurance cumbersome, time-consuming, the insured must negotiate on insurance matters with each insurer and negotiate between the insurer is also quite complicated, time-consuming, and therefore generally more co-insurance less used.
Type
co-insurance can be divided into two different types: (1) the insured on the same subject-matter insured, but with two or more than two insurance companies signed a insurance contract. When the liability occurs, its proportionate share of reparations borne by insurance companies reinsurance.
(2) when not in full safety, it does not should be treated in full insured to protect themselves, so that this form of insurance also called co-insurance by the insurer and the insured. When a loss occurs, the shortfall part conceited by the insured.
features
insurance period ① total surety must be the same. ② co-surety insurance of responsibility must be the same.
③ co grantor insure the subject must be the same. Also refers to co-insurance by the insured and the insurer underwriting in order to protect themselves common risk insurance assessments. As underinsurance its shortfall can be regarded as the insured to protect themselves. When a loss occurs, the insurer and the insured amount of compensation only comparable insurance, less than some conceited by the insured.
content
The insured should be stated in accordance with the terms of co-insurance co-insurance rate, calculated from the insurable value of the subject matter of the amount insured, the insured value is the insurance underwriting loss the actual cash value or replacement cost or other value specified in the policy of the subject. Typically co-insurance rate used was 80%, sometimes up to 90% or 100%, the insurer liable for compensation in accordance with the ratio between the minimum amount of cover stipulated amount of insurance and coinsurance provisions. If the insured amount insured does not meet the minimum amount specified proportion of co-insurance provisions, partial loss of its subject matter insured can not get full compensation. Compensation is calculated under the following common insurance policy:
= actual payment amount (actual insured amount ÷ a predetermined amount insured) × amount of loss - deductible
wherein: a predetermined insurance coinsurance proportion of a and B will each own 10 million buildings insurance fire insurance, co-insurance requirements in terms of the policy: amount = time of the loss of the actual cash value of the insurance object × coinsurance rate
For example, 80% a insured 8 million, 2 million acetate insured only in a fire they all suffer from the loss in the loss of $ 20,000, according to the above formula, a can obtain full compensation $ 20,000, b it can only get compensation for $ 5,000. Thus, in fire insurance, 80% co-insurance clause does not mean that the insurer paid only 80% of any losses, but the insurer's liability depends on the ratio of the insured amount to 80% of the value of the property, insurance person payment amount will never exceed the insured amount.
Note
The first to fire damage, represented by property insurance is generally uncertain value insurance, the insured value is based on the value of the subject matter insured at the time of loss is prospective insured in order to obtain full payment, it must always verify the value of the subject matter insured, the insured amount and adjust accordingly, in order to avoid losses in full under the insurance they must bear. If the insured amount is the purchase value of the property insured up to a certain percentage (eg 80%) can be considered as full insurance. Failed to meet 80% of the property value, the insured will be seen as a co-insurer difference between the two, actually belong to the category of your own risk. By using a common insurance policy, while adding the equivalent of a "foundation exclusions," The main purpose of this provision is that the facility will be the foundation of the building excluded from coverage policies.
Second, the vast majority of insured loss is a partial loss, so there is a real need no insurance, the insurer solve this problem by adjusting the premiums. If the property owner is willing, it can buy insurance in accordance with the full value of the property (100%), insurance companies are also full amount of the insured loss, low tariff rates charged by insurance companies to charge more than 80% co-insurance clause . Co-insurance premium rate and inversely proportional to the ratio, the higher the percentage of co-insurance, insurance rates lower; contrary, the lower the percentage of co-insurance, the higher insurance premiums. For example: 80% of the total retention rate proportional factor is 1, the coefficient of 100% rate of only about 0.9, and 70% higher than the rate coefficient of 1.05. As long as the insured amount is equal to or greater than the specified amount insured, the insured portion of the loss does not exceed the amount of insurance you can get full compensation.
Third, limit the insurer under the insurer's liability is generally based on the actual maximum payment of insurance amount, insurance value, actual damages and joint liability insurance policy in the lowest limit. Therefore, even if the insured amount is greater than the specified amount of insurance coverage, the insured can not get higher than the actual loss of payment.
and reinsurance
to share the risk, the co-insurance is the first risk-sharing, while reinsurance is the second risk-sharing. In terms of the relationship between the insured and the insurer, in co-insurance, the insurance relationship established between the insured and the insurer is horizontal, but there is a direct legal relationship between the insured and each insurer; and in reinsurance, not between the insured and the reinsurer direct legal relationship, reinsurers have direct legal relationship only between the insurer and, therefore, the applicant has no right to lodge a claim request to reinsurers, while the reinsurers also no right to request the insured to pay premiums.
From the development point of view the situation in recent years, although there are some differences coinsurance and reinsurance, but the two are not contrary to, but becoming closer, mutually reinforcing each other. In modern society, the cumulative risk of a variety of subject-matter insured increases, a significant increase in the amount of insurance, therefore, in the insurance market, insurance and reinsurance combined together using, have become commonplace, which can reach dangerous prompt and thorough dispersion effect. Co-insurance on the specific approach of gradually moving to reinsurance, mainly in the following areas:
implement chief co-guarantor of the parallel type system of co-insurance: the chief guarantor system is in a total number of coinsurance people elected a co-insurer as chief guarantor, surety by the chief total of each hand in dealing with the establishment of co-insurance practice, co-chief guarantor system, in fact, adopted the chief reinsurer system reinsurance contracts, is co-insurance the specific performance of reinsurance.
type of joint co-insurance: type of joint co-insurance the way, is the same underwriting risk of the various co-surety jointly and severally liable. All co-insurer undertakes joint and several liability of the insured person's insurance compensation, the total loss of the insured per capita obliged to compensate the co-insurance, co-insurance but who, after fulfilling all obligations to indemnify the insured, to other co-insurer to take on its assessed share. This form of co-insurance, in reinsurance of specific practices completely.
In the co-insurance of reinsurance while the reinsurance also adopted certain practices of co-insurance, co-insurance there is a trend of reinsurance. Such as between reinsurance and direct insurance in the economy has formed a co-insurance relations in recent years, the practice of London insurance market, showing the trend of reinsurance and coinsurance coexistence: in the reinsurance contract, clearly stipulates the reinsurer to man-made and primary insurance co-insurer, in this way, then the insurer directly involved in the direct insurance business. Obviously, the original insurer and the reinsurer to assume joint responsibility for the practice of the same danger, is a concrete manifestation of co-insurance reinsurance.