👉 Overinsurance refers to a situation where an individual or entity fails to cover their losses due to financial limitations. This can occur when individuals have insufficient funds available for unexpected expenses, such as medical bills, and are unable to afford to pay them on time. In insurance jargon, this scenario is often referred to as "over-insured," which means that the insured has paid more than they would have if they had been financially able to cover their losses. This can result in higher premiums for future
