JSE AND OCCUPANCY INSURANCE 
EXPLANATION OF USE AND OCCUPANCY 
INSURANCE CHART 
{As reproduced on Pages 10 and 11) 
~ Three important factors must be determined before 
ntelligent consideration can be given to Use and Occu- 
pancy insurance by a prospective policy-holder. These 
are: 
The amount of Use and Occupancy insurance 
aecessary for complete coverage. 
The form of policy best suited to the type of 
business earnings under consideration. 
The premium cost of such a form of policy. 
To help establish these, the accompanying chart 
has been made. It illustrates an actual computation 
for a mercantile class and develops the above three 
factors in flow line method. The computation for 
sither a manufacturing or a “Service” class of business 
would appear in similar fashion. The chart is com- 
posed of three tables which are designated as: 
Table No. 7—Showing the results of a past fiscal 
year necessary for determining a basic estimate of the 
amount of insurance required for the next ensuing year. 
| 
Table No. 1 
Table No. 2—Showing the adjustment of the Basic 
estimate for complete coverage under the Blanket Coin- 
surance form and the premium cost for insurance under 
this form. 
Table No. 3—Showing the adjustment of the Basic 
=stimate for complete coverage under forms other than 
the Blanket Coinsurance form and the premium cost 
‘or insurance under whichever one of the other forms is 
selected. 
It will be noted that table number one is divided into 
three major steps designated as A-B-C. These are 
intended to utilize a statement showing the results of a 
past fiscal year’s operations in order to arrive at a basis 
for estimating the results expected during the next 
ensuing year. 
This table is intended to serve as a guide for separat- 
ing Income of a past fiscal year from operating sources 
(Step A) into two parts, First, that part which is #ot 
Use and Occupancy insurance value (Step B), and;