Coinsurance is a risk-sharing agreement between the insurer and the insured under a particular insurance policy. The insured agrees to cover a percentage of the losses after the deductible is satisfied, which means that the insured must pay the deductible before the insurer covers its part of the bill.
For example, under the health coinsurance plan of 70/30 term, the insured is responsible for 30% of medical cost, and the insurer shall pay the remaining 70%. However, this will only apply after the insured has reached the deductible amount.
[Last updated in March of 2022 by the Wex Definitions Team]
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