Page 373 - Misc Ebook IC 78
P. 373
Miscellaneous Insurance
(ii) The sum insured selected by the proposer and its
relationship to the total value.
(iii) The maximum probable loss , regard to the nature
of the stock.
(iv) The normal rate for the risk on full value insurance.
Generally the method chosen for rating is:
i) If cover is 75% of full value, 90% of premium is
charged.
ii) If cover is 65% of full value, 80% of premium is
charged.
iii) If cover is 50% of full value,70% of premium is
charged.
iv) If cover is 25% of full value,50% of premium is
charged.
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