I was checking out the coinsurance calculator available here on CADO and I would like to make some suggestions to make it better. First of all I would like to say thanks to Roy for this website and secondly, thanks to whoever started the coinsurance calculator (if it wasn't Roy himself).
1) The words "Coinsurance Penalty" should be changed to say "Percentage compensable" or "Coinsurance percentage compensable". If the amount getting paid after applying coinsurance is 81%, then .81 is not a "penalty". The penalty would be the reciprocal, .19 or 19%.
2) The percentage should be extended two decimal places. I believe this is standard procedure in the industry. Not extending the percentage the additional two places yields an answer which, on average, will be off by 1/2 of one percent. On a $200,000.00 net claim this would be (on average) a $1000.00 error.
Instead of .81 or .8156 it might look better to show 81.56%
3) I would be wary of having a form that says "maximum recovery" on an RCV basis when the policy might be ACV only.
It's great that the form will show coinsurance on both an RCV and ACV basis for those policies that are RCV. It is correct to calculate it both ways for RCV policies and pay the larger of the two methods. But it could be a problem to show an RCV number on an ACV policy.
It might be better to have a button to check whether it is ACV or RCV policy, and suppress (don't show) the RCV number for policies that don't pay on that basis.
Instead of "maximum recovery" I would suggest "net claim amount - RCV basis" and "net claim amount - ACV basis".
Also the "net claim amount - RCV basis" can have an asterisk or parenthesis that says "not including recoverable depreciation (if any), see Statement of Loss"