What is meant by dual insurance?

Dual insurance refers to the situation where more than one policy covers the same risk. This means that the insured has multiple insurance policies that address the same exposure or event, allowing them to potentially claim from more than one insurer in the event of a loss. This arrangement can enhance the overall coverage by providing broader protection, although it may also complicate the claims process, as insurers will need to verify the extent of coverage and agree on how to settle any claims.

The other options refer to different insurance concepts. For instance, having more than one insurer underwrite the same policy is more related to co-insurance rather than dual insurance. Reinsurance, the context in which part of the risk is transferred to another insurer, is specifically a separate agreement between an insurer and a reinsurer meant to manage risk exposure, not directly related to the insured holding multiple policies. Lastly, the notion of the insured carrying part of the risk applies to deductibles or self-insurance, which is also distinct from the idea of dual insurance.