Rating By Layer of Insurance [Discussion]

The author exercises singular care to specify precisely the scope and purpose of the paper, "Rating by Layer of Insurance." The study is limited to the losses under the Homeowners policy, specifically, direct physical damage losses incurred on the dwelling building occasioned solely by the fire hazard. The author would not have the reader imagine that the conclusions pertain to the Homeowners policy overall. Nor should the reader, in disregard of the author's purpose, impute the findings to any classification of fire risk beyond the relatively narrow prescription, dwelling building physical damage risks, most probably not subject to abnormal underinsurance. The mathematical analysis is carefully developed and the pertinent calculations should impose no undue hardships on the reader familiar with graduation methods. While the graphical presentation may initially appear somewhat awesome for one whose responsibilities no longer encompass statistical methodology, the author supplies cues and actual instructions by which all becomes relatively easy.