evans kiprono
Jul 4
Differentiate between coarse excess protection and close excess protection?
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ChatGPT
Jul 4
Coarse excess protection and close excess protection are two types of excess insurance coverage that provide additional protection beyond the primary insurance policy.
Coarse excess protection typically provides coverage for larger losses that exceed the limits of the primary insurance policy. This type of excess protection kicks in after the primary policy has been exhausted, providing an additional layer of coverage for high-cost claims.
Close excess protection, on the other hand, provides coverage for losses that are closer to the limits of the primary insurance policy. This type of excess protection may have lower attachment points and may be triggered by smaller losses that exceed the primary policy limits.
In summary, coarse excess protection provides coverage for larger losses that exceed the primary policy limits, while close excess protection provides coverage for losses that are closer to the primary policy limits.
Coarse excess protection typically provides coverage for larger losses that exceed the limits of the primary insurance policy. This type of excess protection kicks in after the primary policy has been exhausted, providing an additional layer of coverage for high-cost claims.
Close excess protection, on the other hand, provides coverage for losses that are closer to the limits of the primary insurance policy. This type of excess protection may have lower attachment points and may be triggered by smaller losses that exceed the primary policy limits.
In summary, coarse excess protection provides coverage for larger losses that exceed the primary policy limits, while close excess protection provides coverage for losses that are closer to the primary policy limits.
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Google Gemini AI
Jul 4
Coarse Excess Protection
- Description: Excess coverage that provides a broad band of protection against large losses.
- Premium: Typically lower than close excess protection.
- Coverage: Provides excess coverage only when the underlying coverage limits are exceeded by a significant amount (e.g., $1 million or more).
- Purpose: Protects against catastrophic losses that exceed the capacity of the underlying policy.
Close Excess Protection
- Description: Excess coverage that provides a specific and narrow band of protection against losses that fall within a defined range.
- Premium: Typically higher than coarse excess protection.
- Coverage: Provides excess coverage only for losses that occur within the specified range (e.g., between $500,000 and $1 million).
- Purpose: Protects against losses that are not covered by the underlying policy but are still significant in size.
Key Differences:
- Coverage Range: Coarse excess protection provides broad coverage for large losses, while close excess protection provides narrow coverage for losses within a specific range.
- Premium: Coarse excess protection generally has a lower premium, while close excess protection has a higher premium due to the more specific coverage provided.
- Purpose: Coarse excess protection is designed to protect against catastrophic losses, while close excess protection is designed to fill coverage gaps and provide protection for specific loss scenarios.
- Description: Excess coverage that provides a broad band of protection against large losses.
- Premium: Typically lower than close excess protection.
- Coverage: Provides excess coverage only when the underlying coverage limits are exceeded by a significant amount (e.g., $1 million or more).
- Purpose: Protects against catastrophic losses that exceed the capacity of the underlying policy.
Close Excess Protection
- Description: Excess coverage that provides a specific and narrow band of protection against losses that fall within a defined range.
- Premium: Typically higher than coarse excess protection.
- Coverage: Provides excess coverage only for losses that occur within the specified range (e.g., between $500,000 and $1 million).
- Purpose: Protects against losses that are not covered by the underlying policy but are still significant in size.
Key Differences:
- Coverage Range: Coarse excess protection provides broad coverage for large losses, while close excess protection provides narrow coverage for losses within a specific range.
- Premium: Coarse excess protection generally has a lower premium, while close excess protection has a higher premium due to the more specific coverage provided.
- Purpose: Coarse excess protection is designed to protect against catastrophic losses, while close excess protection is designed to fill coverage gaps and provide protection for specific loss scenarios.
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