Guam § 18309 - Coinsurance Clause Explanation.

§ 18309. Coinsurance Clause Explanation.

Where a policy contains a coinsurance clause, the insurer

shall notify the policy-holder of its existence, such notification to

include the following information:

(a) The name of the Insured;

(b) The policy number of the policy and the effective

date thereof;

(c) The following notice in type of which the face is

not smaller than six (6) points:

COL6/24/2021

“Important, this policy contains a

coinsurance clause. If the amount of insurance

purchased is not equal to the cash or replacement

cost of your insured property then the settlement

you received arising from future losses will not be

sufficient to replace the loss you have suffered. It

is your responsibility as the insured to make

certain the insured value, as stated below, is equal

to cash value or full replacement cost of your

insured property if you desire full protection.”

(d) The coinsurance clause in its entirety is a type of

which the face is not smaller than six (6) points;

(e) The insured value of the property.