Property insurance frequently contains a "coinsurance clause" stating that, if the insured values its property at some fraction ... of its actual value ... , and ... is less than a coinsurance percentage ... (often 80%), the insurer may reduce its payment to ... of the loss. This Demonstration permits exploration of work done by Itzhak Venezia comparing an insurance policy with valuation α and coinsurance percentage ... to an insurance policy with no coinsurance and a valuation percentage ... , where ... . The user sets ... , ... , and ... with sliders and sets the parameters of the (beta) loss distribution function with a 2D slider. Mathematica outputs graphs showing insurance payments and wealth as a function of loss and a graph showing the cumulative distribution of wealth under both insurance policies.


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