2. When insuring property, the insurance amount cannot exceed its actual value (insurance value) at the time of concluding the insurance contract.

Insurance tariff - the rate of the insurance premium or the insurance premium (insurance premium) expressed in rubles, payable per unit of the insurance amount, which is usually 100 rubles. In simpler terms, it is the percentage of the insurance value of the property established by the insurance company within the framework of laws concerning insurance activities.

An underwriter of an insurance company is a person authorized by the insurance company to analyze, accept for insurance (reinsurance), and reject various types of risks, as well as classify the selected risks to obtain the optimal insurance premium for them.

Title insurance (title insurance) is protection against the risk of losing the right of ownership of real estate as a result of the transaction for the acquisition of real estate being declared invalid or illegal. A transaction can be declared invalid by a court in the following situations:

- the presence of unaccounted property interests of minors, heirs, persons serving time in places of deprivation of liberty;
- the discovery of errors or fraud in the current or previous transactions with the real estate;
- in the case of the incapacity of one of the parties to the transaction, etc.

The appraised value of the property is the final result of the appraisal study, calculated by a licensed appraiser.

The cadastral value of housing is the value of the real estate object established through state valuation, primarily for the calculation of taxes.

## Instruction:

In the event of a discrepancy between the insurance amount and the actual value of the property, the following consequences are established:

a) if the insurance amount is set below the actual value of the property in the Insurance Contract, the Insurer, in the event of an insurance case, compensates the Insured (Beneficiary) for the damage incurred within the limits of the insurance amount established by the Insurance Contract without applying the ratio of the insurance amount and the actual value of the property (first risk payment condition).

b) if the insurance amount specified in the Insurance Contract exceeds the actual value of the property, the Contract is void to the extent that the insurance amount exceeds the actual value of the property.

Gross insurance tariffs (title insurance)

| Group of insured objects | Number of previous transactions with the real estate object | Annual tariff |
| :--- | :--- | :---: |
| Apartments and parts of apartments, consisting of one or several isolated rooms, non-residential buildings | Primary market (one transaction) | 0.18 |
| Secondary market (no more than 3 transactions) | One transaction preceding the current transaction | 0.20 |
| No more than 3 transactions*** |  |  |

**** in the case of more than 3 transactions over the past 3 years preceding the current transaction, the tariff is agreed individually.

## List of corrective coefficients (title insurance)

| Factors | Coefficient |
| :--- | :---: |
| The presence in the history of the real estate object of one or more of the following facts:  - a time gap of less than one year between two preceding (or between the current and the preceding) transfers of ownership of the real estate object;  - the presence of lease transactions;  - transfer of rights as a result of inheritance or gift;  - transactions carried out by persons on the basis of a power of attorney;  - more than 2 transfers of ownership of the real estate object. |  |
| - the last transaction preceding the current one was more than 3 years ago | 1.2 |
| Absence of one of the necessary documents | 0.8 |

## MOSCOW OLYMPIAD OF SCHOOL STUDENTS IN FINANCIAL LITERACY FINAL STAGE $10-11$ GRADES 2nd variant Answers and solutions

## Problem 1

You are an underwriter of an insurance company. According to the instructions for title insurance (Appendix to this problem), based on the data provided below, you need to set the tariff and determine the amount of the insurance premium. Be sure to keep the glossary in front of you.

Data:

Insured Ostrozhnov Konstantin Petrovich is purchasing an apartment on the secondary market with the participation of credit funds. The loan amount secured by real estate is 20 million rubles. Konstantin Petrovich has a good credit history and easily obtained approval for such an amount. The appraised value of the apartment is 14,500,000 rubles, the cadastral value is 15,000,000 rubles. The bank-lender requires Ostrozhnov to purchase a title insurance policy to protect its financial interests.

Seller - Ivanov G.L., born in 1952, the sole owner of the apartment, purchased it more than 5 years ago under a construction investment agreement. Married, has adult children, no one is registered in the apartment. At the time of purchasing the apartment, he was married. Provided all necessary documents except for certificates from the psychiatric and narcological dispensaries. Does not drive, does not have a driver's license, and is not subject to military service.
# Solution:

In accordance with the instruction, the base rate is $0.2\%$ of the insurance amount, apply a reducing factor for the absence of a change in ownership over the past 3 years $(0.8)$ and an increasing factor for the absence of certificates from the PND and ND $(1.3)$.

In total: $0.2 * 0.8 * 1.3=0.208\%$

The loan amount exceeds both the appraised and the cadastral value. Therefore, we choose the maximum value to minimize the difference between the loan amount (bank requirement) and the allowable amount by law - 15000000 and take it as the insurance amount. $15000000 * 0.00208=31200$

Answer: rate $0.208\%$, SP=31,200 rubles.

Maximum 20 points

Evaluation criteria:

2 points for each correctly found coefficient and 4 points in total for the correct explanation of the use of these coefficients (if there is a correct explanation of only one coefficient, only 1 point out of 4 is given, and if there is a correct explanation of only two coefficients, only 3 points out of 4 are given). In total, 10 points for this part of the correct solution.

2 points for the correct rate.

A total of 8 points for the correct insurance premium amount.

- Participants receive only 2 points if the insurance premium is calculated without arithmetic errors based on an incorrect appraised value of the apartment.
- Participants receive only 4 points if the insurance premium is correctly determined but lacks a complete correct justification for its application.


## Task 2

The following information is available for JSC «Total Trade».

The annual revenue of JSC «Total Trade» is 2,500,000 rubles (after VAT payment). It is known that the ratio of operating expenses to revenue is 3/5 annually. The authorized capital of JSC «Total Trade» consists of the nominal value of the company's shares acquired by shareholders and is eight times the minimum authorized capital of a public company established under Russian law. The authorized capital is made up of 1600 ordinary shares, $35\%$ of which belong to the general director.