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 Occupancy
 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 composed
 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 Coinsurance
 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 separating
 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;