RMI 3504 Lecture Notes - Lecture 4: Co-Insurance, Disability Insurance, Net Income

• School: Temple University
• Department: Risk Management and Insurance
• Course: RMI 3504
• Professor: Wilkins

Document Summary

Expected revenue= ,000 and expected expenses= for a net profit=; actual revenue= sh, actual expenses= , loss of . Pay the insured , in expenses and in loss profit. Additional expenses that the business would not normally have, expenses occurred during the period of recovery. Business income coverage (bic)= time element coverage: depends on how long the loss occurs. Requirements for a loss: direct damage to property caused by a covered peril. Can be indirect if coverage allows: occur at described premises, suspension of operations and/or incurring extra expenses, proven financial loss. Bic insuring agreement: insurer pays for losses of business income due to the suspension of operations during period of restoration . Business income insuring agreement: 3 options for coverage. Payments: insured paid on actual loss sustained , payments do not stop when policy expires. Covers prohibited access to premises due to direct physical loss or damage to a nearby premises.