Expressions

Expressions in CDL can be simple expressions or dynamic expressions.

Simple Expressions

Amounts in CDL can be expressions in addition to being numbers, such as when the share is a rational fraction without a terminating decimal representation, like 1/3.

Contract
 Declarations
  Currency is USD
 Covers
  1/3 share of 100k

The contract pays 33,333.33.

Expressions are also used when the amounts are functions of other amounts. 

Contract
 Declarations
  Currency is USD   
 Covers
  100% share
 Sublimits
  60k for Building
  60k * 0.2 for Contents
  60k * 0.1 for BI

The contract pays 78k. All the sublimits apply, and the claims are limited to 60k + 12k + 6k.

Nestable arithmetic and logical expressions are allowed.

Contract
 Declarations
  Currency is USD   
 Covers
  100% share of ((20k * 5) / max((5-3),1)) - 10k

The contract pays 40k, which is how the expression for the limit is calculated.

Dynamic Expressions

Some words in CDL evaluate to a value (either per analysis or per event), which can be used to evaluate the expression of the amount.

Replacement Cost Value (RCV)

 Contract
 Declarations
  Currency is USD   
 Covers
  100% Share
 Deductibles
  Max(2% RCV Covered, 25k) per risk

The following example duplicates the (150k, 30k, 20k) R1 claims to R2, but doubles the exposure values of R2.

R1 has a TIV of 1.15M (making 2% RCV Covered = 23k).

R2 has a TIV of 2.3M (making 2% RCV covered = 46k).

The contract pays 329k.

  1. R1 total payout is 175k on claim of 200k.
    • Deductible expression Max(2% RCV Covered, 25k) evaluates to 25k when RCV covered = 1.15M.
  1. R2 total payout is 154k on claim of 200k.
    • Deductible expression Max(2% RCV Covered, 25k) evaluates to 46k when RCV covered = 2.3M

Subject

The share of a layer can be a function of loss. A share could be 0% at the attachment point, max participation at the limit, and a linear function in between. The keyword Subject in the expression indicates the cover’s subject loss.

 Contract
 Declarations
  Currency is USD   
 Covers
  Min(-1/2 + Subject / 300k, 1/2) Share of 150k xs 150k

In this contract, the maximum participation is only 50%. The share evaluates to 0 at the attachment (subject=150k), 50% at the limit (subject=300k), and interpolates for any subject loss in between. Since the subject of this cover is 200k, the expression evaluates to 1/6. 200k in the layer of 150k xs 150k is 50k. So the payout is 1/6 of 50k. So the payout is 1/6 of 50k = 8,333.33.