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/%e City of Santa Ana rr <br /> CORE 360' <br /> C o s u lira tc e I II II us+ ii a[J ai, <br /> Coinsurance Formula: <br /> Insurance Carried = Insurance Required x Loss- Deductible =Settlement <br /> Example of Coinsurance formula applied to a hypothetical loss situation: <br /> Property Value = $1,000,000 <br /> Coinsurance Amount = 80% <br /> Deductible = $500 <br /> Insurance Required = $800,000(80% of$1,000,000) <br /> Insurance Carried = $400,000 <br /> Loss Incurred = $200,000 <br /> Settlement determined by applying the coinsurance formula: <br /> $400,000 <br /> (Insurance Carried) <br /> x$200,000 (Loss)-$500(Deductible)=$99,500 Settlement <br /> $800,000 <br /> (Insurance Required) <br /> Note: If the property in the above example is insured for the full insurance required ($800,000),the insured will recover <br /> $199,500. In the above example,the insured will suffer a$100,000 penalty for not being insured to the proper limit. <br /> 37 <br /> i <br /> ��� JJ it I�11�III1111�D���1�llll lUl�ll���JJ��Il <br />