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
Plan wherein total withdrawal or income payments from tax deferred savings plans exceed $150,000 in any one year. An excess distribution tax of 15% of the amount greater than $150,000 must ...
Fund established to pay specified losses, usually the low severity property losses. This type of account is an excellent device in conjunction with a self-insurance plan, in which the fund ...
Arrangement whereby the insured pays the insurance company a relatively small monthly premium payment. In exchange for this premium payment, the insurance company processes and pays claims ...
Clause, generally found in business interruption insurance, that establishes the same indemnification basis as the coinsurance clause. ...
Single premium life insurance policy, from which the death benefit is used to pay the predetermined expenses of the insured's funeral. The funeral home agrees to provide the funeral in ...
Individual who has the right to the use of assets while the usufruct is in force. ...
The definition for retainer agreement: work for hire contract that provides a client with a fixed number of work-hours from freelancers or lawyers. Even a real estate lawyer uses this type ...
Damage or destruction of property and/or property that is illegally transferred as the result of misconduct of individuals. The risk is insurable. ...
Monetary sums attached to an insurance company's assets, as listed on the annual statement. ...
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