On the Economic Advantages of the Coinsurance Clause
指出共同保险条款的一个被忽视的优势：所有风险厌恶的投保人都会偏好包含该条款且精算价值相同的保险合同。
The coinsurance clause is a widespread rule in insurance (e.g., in commercial insurance, homeowners insurance, and other personal lines). It states that if a property is underinsured, the insurer is responsible only for that portion of the loss that the amount of insurance bears to the value of the asset. The purpose of this article is to point out an important advantage of the coinsurance clause, previously neglected in the literature. It is shown that all risk averse insureds will prefer an insurance contract with a coinsurance clause over a contract without a coinsurance clause of the same actuarial value.