Introduction to Reinsurance.pdf - Prince Lobel

The Loss – Scenario A
Mitchell's Never Inn, a popular night spot in New
Orleans, is located next to the levee. A hurricane
rips off a small section of the roof, causing
damage to the upstairs private party room and
minimal damage to the main bar area.
Additionally, the heavy rains ultimately cause the
levee to break flooding the streets, the bar,
including the bar's basement stocked full of liquor.