USE AND OCCUPANCY INSURANCE
C3—The amount entered here represents the esti-
mated results to be produced by the next twelve
months operations and the basic estimate upon which
the proper amount of Use and Occupancy insurance is
predicated. As the next twelve months pass, it would
be advisable to check this estimated amount against the
actual operating results at intervals of not more than
9odays. Then there can be made any necessary adjust-
ment in the amount of Use and Occupancy insurance
required to parallel the business trends which were
unforeseen at the time the policy was written.
Following this point, two work-out tables are avail-
able, one for the Blanket Coinsurance form (Table 2)
and one for forms other than the Blanket Coinsurance
form (Table 3). [t is suggested that both tables be
used in order to compare the premium cost of the Blan.-
ket Coinsurance form with the premium cost of any
other form. This, with a view to adopting the Blanket
Coinsurance form wherever possible, even though one
of the other forms might be considered suitable.
Table No. 2
This table is a guide for use in the adjustment of the
Basic Estimate (Table 1—Step C3) for coverage under
the Blanket Coinsurance form. It divides the Basic
Estimate into the two items as required for coverage
ander the Blanket Coinsurance form.
Item I—Under this section of Table 2 are the steps
necessary to arrive at the amount of insurance required
under Item I of the Blanket Coinsurance form in order
‘0 comply with the provisions of the Coinsurance Clause
as it applies to Item I. The first amount entered is
the Basic Amount (Table 1—Step C3). From this is
deducted the combined cost of Full Annual Ordinary
Payroll and the Full Annual Cost of Heat, Light and
Power. The remaining difference is the amount of
insurance necessary under Item I of the form. To
this amount is applied the Item I rate which produces
the premium cost for insurance under Item I.
Item II—Under this section is inserted the amount of
Full Ordinary Payroll for the largest go consecutive
days of the year. To this amount is applied the Item II
cate which produces the premium cost for insurance
ander Item II (if desired).
The final operation of this Table shows the total
amount of insurance to be maintained under the