Questions before Final Decision How could they structure an insurance contract to cover the grain volume exposure? More specifically, how would a loss be defined? And, what would be the payment to UGG conditional on a loss 2)What are the advantages and disadvantages of integrating the grain volume coverage with the firm's other insurance coverages? Th at is, instead of having separate policies with separate deductibles and limits for the various exposures (including the grain volume exposure), What are the advantages and disadvantages of bundling all of the firm s exposures in one policy with one deductible and one limit (3)Ignoring cost differences, are there any advantages of the insurance contract approach versus the use of weather derivatives? (4)Are there any loss control measures that could be used to manage UGG's weather risk?24 Questions before Final Decision ◼ (1) How could they structure an insurance contract to cover the grain volume exposure? More specifically, how would a loss be defined? And, what would be the payment to UGG conditional on a loss? ◼ (2) What are the advantages and disadvantages of integrating the grain volume coverage with the firm’s other insurance coverages? That is, instead of having separate policies with separate deductibles and limits for the various exposures (including the grain volume exposure), what are the advantages and disadvantages of bundling all of the firm’s exposures in one policy with one deductible and one limit? ◼ (3) Ignoring cost differences, are there any advantages of the insurance contract approach versus the use of weather derivatives? ◼ (4) Are there any loss control measures that could be used to manage UGG’s weather risk?