If the coinsurance requirement is not met, which describes the insurer's payment?

• A. The insured pays the full loss
• B. The insured pays a deductible and the insurer pays the remainder
• C. The insurer pays the policy limit
• D. The insurer pays a proportionate share of the loss

Answer: (B)

Coinsurance means you must carry a minimum percentage of the property's value to receive full protection. If that requirement isn’t met, the insurer doesn’t pay the full loss or the policy limit. Instead, the loss is shared in proportion to the amount of insurance actually carried versus the amount required. In other words, the insurer pays a proportionate share of the loss, and the insured bears the rest (with the deductible still applying as usual). The other options miss this proportional-sharing rule.