July 2018 Louisiana Agent

Page 12

(2) Requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants". The expiration date of this policy will not cut short the "period of restoration". Loss Example: In the 3 scenarios below, the same loss will be analyzed using each of the three Monthly Limit of Indemnity options: 1/3, 1/4, and 1/6. Scenario #1: Limit of insurance: $150,000 Monthly Limit Option selected by insured: 1/3 Maximum available per month: 1/3 (.333 or 33.3%) of $150,000 = $50,000

Month

BI loss

Available

Paid

Unpaid

March

$25,000

$50,000

$25,000

---

April

$30,000

$50,000

$30,000

---

May

$55,000

$50,000

$50,000

$5,000

June

$55,000

$45,000

$45,000

$10,000

July

---

$0.00

---

---

August

---

---

---

---

TOTALS

$165,000

$150,000 $15,000

Comments: (1) For June, only $45,000 is available, since the amounts paid under Smithco’s policy for March-May totaled $105,000. Scenario #2: Limit of insurance: $150,000 Monthly Limit Option selected by insured: 1/4 Maximum available per month: 1/4 (.25 or 25%) of $150,000 = $37,500

Louisiana Agent 12


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