Description
Apply a supplied deductible and coverage fraction to assessed loss.
Farm economic terms require explicit cost scope, subsidy treatment, price-index bases, moisture conventions and period rates. A partial input cost per output differs from total economic cost, while an insurance scenario excludes unsupplied policy limits. A nominal margin is conditional on supplied amounts and assumptions.
Apply a supplied deductible and coverage fraction to assessed loss.
When to use this tool
Use Crop Insurance Deductible Loss Share when you already have assessedLoss, deductibleAmount, coveredFraction and need to apply a supplied deductible and coverage fraction to assessed loss.
How to use the tool and how it works
- Enter assessedLoss, deductibleAmount, coveredFraction. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read lossAboveDeductible, paymentBeforeOtherLimits. Use the output convention below.
Require loss/deductible>=0 and coveredFraction in [0,1]; above=max(0,loss-deductible), paymentBeforeOtherLimits=above*coveredFraction.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| assessedLoss | Assessed Loss | Required. Finite number; minimum 0. |
| deductibleAmount | Deductible Amount | Required. Finite number; minimum 0. |
| coveredFraction | Covered Fraction | Required. Finite number; minimum 0; maximum 1. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| lossAboveDeductible | Loss Above Deductible | Required. Finite number. |
| paymentBeforeOtherLimits | max(0,assessedLoss-deductibleAmount)*coveredFraction; not an actual insurance entitlement. | Required. Finite number. |
{
"input": {
"assessedLoss": 10000,
"deductibleAmount": 2000,
"coveredFraction": 0.8
},
"output": {
"lossAboveDeductible": 8000,
"paymentBeforeOtherLimits": 6400
}
}Limitations and assumptions
- The deductible is subtracted before coverage. Other limits, exclusions, premiums, actual policy terms and entitlement are not determined.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Reconcile actual farm accounts, contracts, policy terms and forecasts. Use complete cost, risk and valuation methods when local per-unit terms or scenarios cannot establish profitability, obligations or appropriate financial decisions.
References
Similar or alternative tools
- Agricultural Insurance Subsidy Net Premium
Subtract supplied subsidy from gross insurance premium.
- Machinery Residual Value Discount
Discount a supplied future machinery residual value.