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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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