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Deductible Payments
Co-operative Hail provides three types of
coverage to the producer. A full cover policy and two deductible
policies are available. A deductible policy works just like your
home or farm policy. You evaluate how much risk you as a producer
can sustain. The higher the deductible you accept the less cost to
your premium. Please remember deductible policies provide a lesser
coverage.
10% Deductible with Increasing
Payment Factor
(Cost factor 75% of Basic Rate)
No loss payments are made for loss
percentages less than 10. Loss percentages greater than 10
but less than 70 are payable for the percentage of loss less the
10% deductible. For loss percentages in excess of 70, an
additional 1% is paid for each percentage of loss in excess of
70%. The percentage payable will not exceed 100%.
| Loss Percentage |
Factor |
Loss Payable |
| 10% |
-10 |
0% |
| 15% |
-10 |
5% |
| 20% |
-10 |
10% |
| 50% |
-10 |
40% |
| 70% |
-10 + 0 |
60% |
| 75% |
-10 + 5 |
70% |
| 85% |
-10 + 15 |
90% |
| 90% + |
-10 + 20 |
100% |
25% Straight Deductible
(Cost factor 50% of Basic Rate)
No loss payments are made for loss
percentages less than 25. Loss percentages greater
than 25 are payable for the percentage of loss less the 25%
deductible. Maximum payable loss is 75%.
| Loss Percentage |
Factor |
Loss Payable |
| 10% |
-25 |
0% |
| 25% |
-25 |
0% |
| 50% |
-25 |
25% |
| 75% |
-25 |
50% |
| 100% |
-25 |
75% |
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