Common use of Calculation of Indemnity Clause in Contracts

Calculation of Indemnity. ‌ a. Stage 1 on or Before June 20 (Refer to the Benefits document) b. Stage 2 on or After June 21 i. An Indemnity shall be calculated as follows: [Dollar Coverage x Payment Rate]‌ The maximum Indemnity payable shall be 100% of the Dollar Coverage. ii. The Payment Rate is based on the average of the Payment Rate(s) for the Insured’s Selected Weather Station(s). 1) The Payment Rate for the Selected Weather Station(s) will be zero when the Percent of Normal Moisture is greater than or equal to 80 percent. 2) Where the Percent of Normal Moisture is below 80 percent, the Payment Rate will be based on the Payment Rate Schedule below. iii. Except at the discretion of AFSC, no changes will be made to the May Moisture, June Moisture, July Moisture or August Moisture values after an Indemnity has been paid. c. In no case shall the combined Indemnities under any Insuring Agreement (including Hail Endorsement) exceed total Dollar Coverage under this Contract. >= 80 0 >= 54 & < 56 47.0 >= 78 & < 80 3.5 >= 52 & < 54 51.0 >= 76 & < 78 7.0 >= 50 & < 52 55.0 >= 74 & < 76 10.5 >= 48 & < 50 59.0 >= 72 & < 74 14 >= 46 & < 48 63.0 >= 70 & < 72 17.5 >= 44 & < 46 67.0 >= 68 & < 70 21.0 >= 42 & < 44 71.0 >= 66 & < 68 24.5 >= 40 & < 42 75.0 >= 64 & < 66 28 >= 38 & < 40 80.0 >= 62 & < 64 31.5 >= 36 & < 38 85.0 >= 60 & < 62 35 >= 34 & < 36 90.0 >= 58 & < 60 39.0 >= 32 & < 34 95.0 >= 56 & < 58 43.0 < 32 100.0 Indemnity: Calculation Example for Lack of Moisture‌ Assumption: elected Weighting Option A, coverage is $150 per acre on 200 acres of silage for $30,000 total coverage. Coverage is weighted across the months of May to July: 20% May; 40% June; 40% July. May June July August Total Weighted % of Normal Measured Moisture (mm)* 32.8 51.3 32.5 45.9 Days 30C or higher 0 days 0 days 4 days = 4 mm 4 days= 4 mm Days 35C or higher 0 days 0 days 1 day = 2 mm 4 days = 8 mm Measured moisture (mm) less extreme temperature adjustment ** 32.8 51.3 26.5 33.9 Normal Moisture (mm) 44.6 85.9 85 57.8 Monthly Weighting 20% 40% 40% 0% 100% Weighted % of Normal 14.71% 23.89% 12.47% 0.0% 51.07% a. Calculate the monthly weighted percent of normal using the information in the table above. Weighted percent of normal = (measured moisture less extreme temperature adjustment / normal moisture) x monthly weighting: 1) Weighted percent of normal for May = 14.71% 2) Weighted percent of normal for June = 23.89% 3) Weighted percent of normal for July = 12.47% b. Calculate the total weighted percent of normal Total weighted percent of normal = weighted percent of normal for (May + June + July + August) = 14.71% + 23.89% + 12.47% +0.00% = 51.07% rounded down for payment calculation is 51% percent of normal c. Calculate the indemnity using the total weighted percent of normal 1) Using the Payment Schedule for Silage Greenfeed Lack of Moisture, rounding the percent of normal moisture down, determine the payment rate 2) 51% of normal = 55%.payment rate d. Indemnity = total dollar coverage x payment rate = $30,000 x 55% = $16,500

Calculation of Indemnity. ‌ a. Stage 1 on or Before June 20 (Refer to the Benefits document) b. Stage 2 on or After June 21 i. An Indemnity shall be calculated as follows: [Dollar Coverage x Payment Rate]‌ The maximum Indemnity payable shall be 100% of the Dollar Coverage. ii. The Payment Rate is based on the average of the Payment Rate(s) for the Insured’s Selected Weather Station(s). 1) The Payment Rate for the Selected Weather Station(s) will be zero when the Percent of Normal Moisture is greater than or equal to 80 percent. 2) Where the Percent of Normal Moisture is below 80 percent, the Payment Rate will be based on the Payment Rate Schedule belowschedule published by AFSC at the time of Election. iii. Except at the discretion of AFSC, no changes will be made to the May Moisture, June Moisture, July Moisture or August Moisture values after an Indemnity has been paid. c. In no case shall the combined Indemnities under any Insuring Agreement (including Hail Endorsement) exceed total Dollar Coverage under this Contract. >= 80 0 >= 54 & < 56 47.0 >= 78 & < 80 3.5 >= 52 & < 54 51.0 >= 76 & < 78 7.0 >= 50 & < 52 55.0 >= 74 & < 76 10.5 >= 48 & < 50 59.0 >= 72 & < 74 14 >= 46 & < 48 63.0 >= 70 & < 72 17.5 >= 44 & < 46 67.0 >= 68 & < 70 21.0 >= 42 & < 44 71.0 >= 66 & < 68 24.5 >= 40 & < 42 75.0 >= 64 & < 66 28 >= 38 & < 40 80.0 >= 62 & < 64 31.5 >= 36 & < 38 85.0 >= 60 & < 62 35 >= 34 & < 36 90.0 >= 58 & < 60 39.0 >= 32 & < 34 95.0 >= 56 & < 58 43.0 < 32 100.0 Indemnity: Calculation Example for Lack of Moisture‌ Assumption: elected Weighting Option A, coverage is $150 per acre on 200 acres of silage for $30,000 total coverage. coverage Coverage is weighted across the months of May to July: 20% May; 40% June; 40% July. July May June July August Total Weighted % of Normal Measured Moisture (mm)* 32.8 51.3 32.5 45.9 Days 30C or higher 0 days 0 days 4 days = 4 mm 4 days= 4 mm Days 35C or higher 0 days 0 days 1 day = 2 mm 4 days = 8 mm Measured moisture (mm) less extreme temperature adjustment ** 32.8 51.3 26.5 33.9 Normal Moisture (mm) 44.6 85.9 85 57.8 Monthly Weighting 20% 40% 40% 0% 100% Weighted % of Normal 14.71% 23.89% 12.47% 0.0% 51.07% a. Calculate the monthly weighted percent of normal using the information in the table above. Weighted percent of normal = (measured moisture less extreme temperature adjustment / normal moisture) x monthly weighting: 1) Weighted percent of normal for May = 14.71% 2) Weighted percent of normal for June = 23.89% 3) Weighted percent of normal for July = 12.47% b. Calculate the total weighted percent of normal Total weighted percent of normal = weighted percent of normal for (May + June + July + August) = 14.71% + 23.89% + 12.47% +0.00% = 51.07% rounded down for payment calculation is 51% percent of normal c. Calculate the indemnity using the total weighted percent of normal 1) Using the Payment Schedule for Silage Greenfeed Lack of Moisture, rounding the percent of normal moisture down, determine the payment rate 2) 51% of normal = 55%.payment rate d. Indemnity = total dollar coverage x payment rate = $30,000 x 55% = $16,500

Calculation of Indemnity. ‌ a. Stage 1 on or Before June 20 (Refer to the Benefits document) b. Stage 2 on or After June 21 i. An Indemnity shall be calculated as follows: [Dollar Coverage per Acre x Insured Acres x Payment Rate]‌ Rate] The maximum Indemnity payable shall be 100% of the Dollar Coverage. ii. The Payment Rate is based on the average of the Payment Rate(s) for the Insured’s Selected Weather Station(s). 1) The Payment Rate for the Selected Weather Station(s) will be zero when the Percent of Normal Moisture is greater than or equal to 80 percent. 2) Where the Percent of Normal Moisture is below 80 percent, the Payment Rate will be based on the Payment Rate Schedule below. iii. Except at the discretion of AFSC, no changes will be made to the May Moisture, June Moisture, July Moisture or August Moisture values after an Indemnity has been paid. c. In no case shall the combined Indemnities under any Insuring Agreement (including Hail Endorsement) exceed total dollar coverage (Dollar Coverage per Acre x Insured Acres) under this Contract. >= 80 0 >= 54 & < 56 47.0 >= 78 & < 80 3.5 >= 52 & < 54 51.0 >= 76 & < 78 7.0 >= 50 & < 52 55.0 >= 74 & < 76 10.5 >= 48 & < 50 59.0 >= 72 & < 74 14 >= 46 & < 48 63.0 >= 70 & < 72 17.5 >= 44 & < 46 67.0 >= 68 & < 70 21.0 >= 42 & < 44 71.0 >= 66 & < 68 24.5 >= 40 & < 42 75.0 >= 64 & < 66 28 >= 38 & < 40 80.0 >= 62 & < 64 31.5 >= 36 & < 38 85.0 >= 60 & < 62 35 >= 34 & < 36 90.0 >= 58 & < 60 39.0 >= 32 & < 34 95.0 >= 56 & < 58 43.0 < 32 100.0 Indemnity: Calculation Example for Lack of Moisture‌ Assumption: elected Weighting Option A, coverage is $150 per acre on 200 acres of silage for $30,000 total coverage. Coverage is weighted across the months of May to July: 20% May; 40% June; 40% July. May June July August Total Weighted % of Normal Measured Moisture (mm)* 32.8 51.3 32.5 45.9 Days 30C or higher 0 days 0 days 4 days = 4 mm 4 days= 4 mm Days 35C or higher 0 days 0 days 1 day = 2 mm 4 days = 8 mm Measured moisture (mm) less extreme temperature adjustment ** 32.8 51.3 26.5 33.9 Normal Moisture (mm) 44.6 85.9 85 57.8 Monthly Weighting 20% 40% 40% 0% 100% Weighted % of Normal 14.71% 23.89% 12.47% 0.0% 51.07% a. Calculate the monthly weighted percent of normal using the information in the table above. Weighted percent of normal = (measured moisture less extreme temperature adjustment / normal moisture) x monthly weighting: 1) Weighted percent of normal for May = 14.71% 2) Weighted percent of normal for June = 23.89% 3) Weighted percent of normal for July = 12.47% b. Calculate the total weighted percent of normal Total weighted percent of normal = weighted percent of normal for (May + June + July + August) = 14.71% + 23.89% + 12.47% +0.00% = 51.07% rounded down for payment calculation is 51% percent of normal c. Calculate the indemnity using the total weighted percent of normal 1) Using the Payment Schedule for Silage Greenfeed Lack of Moisture, rounding the percent of normal moisture down, determine the payment rate rate 2) 51% of normal = 55%.payment 55% payment rate d. Indemnity = total dollar coverage x payment rate = $30,000 x 55% = $16,500