Thanks for your reply.So
Excess Loss=Min(SI, Max(0, Loss-Excess))
Deductible Loss=Min(SI-Deductible, Max(0, Loss-Deductible))So in your example for all losses up to the SI the two structures have the same recoveries for the insurer but for losses above the SI they have different payments. Which means for the same excess and deductible the coverage under the excess is better and so should have a higher price.
The deductible definitions seems quite unnatural to me.
Author: Ray Christiansen
Last Updated:
Views: 6042
Rating: 4.9 / 5 (49 voted)
Reviews: 80% of readers found this page helpful
Name: Ray Christiansen
Birthday: 1998-05-04
Address: Apt. 814 34339 Sauer Islands, Hirtheville, GA 02446-8771
Phone: +337636892828
Job: Lead Hospitality Designer
Hobby: Urban exploration, Tai chi, Lockpicking, Fashion, Gunsmithing, Pottery, Geocaching
Introduction: My name is Ray Christiansen, I am a fair, good, cute, gentle, vast, glamorous, excited person who loves writing and wants to share my knowledge and understanding with you.