Give the difference between: Double and co-insurance, Premiums and surrender value
Give the difference between: (4 mks)
(a) Double and co-insurance
It is where an insured takes the same insurance policy / insures the same subject matter against the same risk with more than one insurance company. Whereas co-insurance is whereby one insurance company invites other insurers to insure with them the same property against the same risk.
(b) Premiums and surrender value
Premium is the specified amount of money paid at regular intervals by the insured to the insurer in exchange for cover against losses arising from an insured risk. Whereas surrender payment of the premium before the policy matures, is an amount less than the amount of premium already paid.
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