When in the past has LGM-Dairy paid?Between 2002 and 2011,policies purchased in October paid an indemnity four times using the zero deductible.The years are 2002,2005,2008 and 2009.The$1.00 deductible paid off in 2005 and 2008.2012 policies(purchased last October)could receive some payments if they had a zero deductible.
The total indemnity paid for the four years using the zero deductible(average feed)was$6.64.Premiums would have been$5.39.With the$1.00 deductible,2005 and 2008 paid an indemnity of$3.10 with premiums of$1.25.The$1.00 deductible was the winner with a payoff ratio of nearly 3 to 1 due to the 48%government premium subsidy.
Source:
http://www.agweb.com/blog/Know_Your_Market_281/consider_these_dairy_marketing_strategies_to_manage_risk_/
