Which of the following is true of coinsurance?

A) It is rarely found in property insurance policies.
B) It allows the insured to pay an extra premium initially in exchange for a guaranteed option to buy more insurance at certain specified times later.
C) It excuses the insured from paying premiums if he or she becomes disabled.
D) It is a provision under which the insurer and the insured share costs,after the deductible is met,according to a specific formula.

Coinsurance is a provision under which the insurer and the insured share costs, after the deductible is met, according to a specific formula. This helps to ensure that the insured also bears some portion of the risk and helps to reduce the likelihood of moral hazard. Coinsurance is commonly found in property insurance policies, such as homeowner's insurance, where the insured must maintain coverage for a certain percentage (e.g., 80%) of the property's value in order to be fully reimbursed for losses.