Mrs Bright insures her house with XYZ Insurance Company, forgetting that her mortgage company already has the property insured. This is known as?

The situation described where Mrs. Bright insures her house with XYZ Insurance Company while there is already insurance coverage through her mortgage company is referred to as dual insurance. This occurs when the same risk is covered by multiple insurers independently.

In this case, the term “dual insurance” captures the essence of the scenario, which involves overlapping coverage for the same property. The implications of dual insurance can lead to complications, such as the potential for recovery for the same loss from multiple insurers, or challenges in how claims may be settled if damages are incurred.

The other options do not apply to this scenario. Co-insurance typically involves sharing the risk between insurers or sharing the costs between the insurer and the insured, which does not apply here. Reinsurance refers to insurance purchased by an insurance company from another insurer to manage its risk, which is not relevant in this instance. Self-insurance involves retaining risk rather than transferring it to an insurer, which contrasts with the situation presented. Thus, dual insurance is the most accurate term for Mrs. Bright's situation.