The co-insurance provision on homeowners’ policies A) is meant to e

The co-insurance provision on homeowners’ policies

A)

is meant to eliminate homeowners claims for small losses.
B)

means that the homeowner will receive less than 100% reimbursement on all losses.
C)

implies that more than one insurance company may be responsible for the losses.
D)

provides an incentive for homeowners to insure their homes for 100% of replacement cost.

ANSWER

D