United Parcel Service of America - Page 45




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          transportation as respects loss or damage arising out of any one            
          occurrence" and a deductible clause that excluded the first                 
          $25,000 of claims arising out of any one occurrence from                    
          coverage.                                                                   
               On December 28, 1983, an endorsement was added to the AFM              
          policy, which became effective January 1, 1984.  The endorsement            
          stated:                                                                     
               Permission is hereby granted to insure the deductible                  
               amount (25,000.00) applicable to coverage 1B.  Personal                
               Property while in the course of transportation.  If                    
               such property is also insured under policy #IMB-9310977                
               issued by the National Union Fire Insurance Company of                 
               Pittsburgh, PA, and any renewals, or rewrites thereof,                 
               it is agreed that any such insurance shall be ignored                  
               in determining the amount of loss to which such                        
               deductible amount applies.  It is also agreed that                     
               thirty (30) days advance notice of cancellation shall                  
               be given to National Union Fire Insurance Company of                   
               Pittsburgh, PA.  Any claims presented that exceeds                     
               $25,000.00 National Union agrees to abide with our                     
               settlement of such claims.                                             
               Petitioner paid annual installment premiums of $356,945 for            
          coverage of all petitioner's real and personal property,                    
          including parcels held for delivery and in transit.  The annual             
          premium was based on property values and stated rates.  The AFM             
          policy provided a calculation for the annual premium which                  
          operated to apportion $86,820 of the total annual installment               
          premium to property value related to parcels in transit.16                  


               16The $86,820 premium attributable to parcels was computed             
          by multiplying the average daily value of parcels of $354,369,000           
                                                             (continued...)           




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