overinsurance definition

overinsurance

Situation where an insured has bought so much coverage that it exceeds the actual cash value (or the replacement cost) of the risk or property insured. For the insurance company overinsurance constitutes a moral hazard because the insured (overinsured) may be tempted to make a false claim to profit from a loss.

overinsurance is in the General, Marine, & Life Insurance subject.

overinsurance appears in the definitions of the following terms: primacy and moral hazard

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