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the first $100 of value, and in no event did NUF's liability
exceed the declared value of a shipper's package. The Shippers
Interest contract also provided that if petitioner's liability
for loss or damage to a shipper's package was covered by another
insurance policy, then NUF would not be liable for the amount
covered by petitioner's other insurance policy. Other insurance
did exist.
Throughout 1984, petitioner maintained an insurance policy
with Affiliated FM Insurance Co. (AFM policy) that covered
petitioner's liability for loss or damage to shipper's
packages.42 Petitioner paid annual installment premiums of
$356,945 of which $86,820 was allocated to property value related
to parcels in transit. Under the policy, $86,820 of annual
premium provided coverage for an average daily parcel value of
$354,369,000. The AFM policy provided for a $25,000 deductible
to all loss claims arising out of a loss occurrence.
To the extent that other insurance did not exist, the
Shippers Interest contract generally did not limit claims to any
maximum amount per loss occurrence.43 The AFM policy covered
42Petitioner's purchase of the AFM policy and its operation
effect of covering "petitioner's liability" for packages shipped
during 1984 is inconsistent with petitioner's argument that it
had no such liability to shippers after Jan. 1, 1984.
43With respect to packages sent "UPS 2nd day Air" or "UPS
next day air", the Shippers Interest contract limited NUF's
(continued...)
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