FAQ ID # 312
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Rating : Not Rated
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FAQ ID # 312
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| Last Update : 2012/10/30 Rating : Not Rated |
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| Question / Issue |
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| I'm trying to rate a commercial non-residential wind policy with a Building Value of $1,158,800 and Building Amount of Insurance of $1,000,000 and get the following errors: 1. For first loss rating, the building amount of insurance must be less than 80% of the building value. 2. Building #1: Combined Coverage Exceeds $1,000,000 Maximum Allowed for commercial policy forms. ; If I reduce the Building Amount of Insurance to $927,040 I get the following error: Building #1: Amount of insurance must be at least $1,000,000 for first loss rating. How do I get around these errors? |
| Answer / Solution |
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To qualify for First loss the $1,000,000 that Citizens will insure on a CNR property divided by the Replacement cost value must be less than 80%. Since the value of this building is not (this case is .86)you have 2 choices in rating: 1) In TurboStorm, for rating purposes only, bump the Replacement cost value (Building Amount of Insurance field) to $1,250,001 and enter $1,000,000 in the Building amount of Insurance field. The program will rate this based on First loss. Then when you go to the application, change the value manually on the preview of the app to the actual replacement cost. 2) Enter both the building amount of insurance and building value at $1,000,000 and choose 80% coinsurance.
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| Direct Link to This FAQ |
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| http://www.itcdataservices.com/support/trfaq/?f=312 |
| Tags |
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| CNR First loss |
