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DEDUCTIBLE ANALYSIS <br />CITY OF MOUNDSVIEW <br />Y' <br />A) Facts regarding premiums and losses <br />1) <br />Property and Casualty Premiums $72,129 <br />2) <br />Deductible Options <br />Deductible Annual. Aggregate Credit I of Premium <br />$ 1,O00 None $ 5,000 6.9% <br />5,000 50,000 8,000 11.09% <br />10,000 50,000 11,000 15.25% <br />4. <br />3) <br />Summary of 6 years Loss History (5-1-80 to 5-1-87) <br />1) Total Claims 30 <br />2) Claims Closed Without Pay Payment 10 <br />3) Claims Less Than $5,000 Deductible 18 <br />4) Cost of Claims Less than $5,000 $21,269 plus Loss <br />Adjusting Expense <br />5) Average Value of vapai.d <br />Cz <br />Claims for 6 years <br />(21.2694) $3,545 <br />6) Average Number of Claims <br />per year (3016) 5 <br />B) Conclusions: <br />1) <br />If the same loss experience continues for the future, and <br />if:-_; <br />the projected savings continues, the City can probably <br />safely assume a deductible of $5,000.00 on property and <br />casualty losses and expect a net savings in insurance cost <br />over the long term.`' <br />2) <br />Projected Cost Savings for 5 Years <br />A) Projected Premium Savings <br />$8,000 x 5 = $40,000 <br />B) Projected Loss to be Paid <br />1) Average loss paid $3,545 <br />2) Estimated loss adjustment <br />expense per year 11500 <br />$5,045x5= $25,225 <br />C) Projected Savings $14,775 <br />DEDANA.CHU <br />