Premium Pass-Through
What is it, and how is it calculated?
What it is: Your proportional share of the actual premium Simple Mining pays the insurance carrier for your covered equipment. There is zero markup on the insurance premium. The Premium Pass-Through is pure cost recovery. Simple Mining's only compensation is the Administrative Fee.
The formula:
Total Annual Premium ÷ Total Insured Value) × Your Coverage Value ÷ 12
The ratio of Total Annual Premium to Total Insured Value is your Applicable Premium Rate. It is set as an annual percentage at your enrollment date and fixed for the remainder of the Policy Term. Simple Mining discloses this rate at enrollment.
Partial-term proration: If you enroll after the policy term start date, you are billed the monthly installment only for the months of coverage remaining through the Policy Term End Date.
Example: Monthly Premium Pass-Through of $33.33, coverage starting August 1 through January 23 = 6 monthly installments ≈ $200 total (vs. $400 for a full year).
The final month is always billed in full, even if the Policy Term End Date falls mid-month.
This is not a subscription. Enrollment in the insurance program means you are committed to the full amount through the Policy Term End Date. You may also pay the remaining balance in advance.
Coverage Value: Each unit is insured at its Replacement Value as determined by Simple Mining at enrollment. This value is fixed for the Policy Term. The Replacement Value does not adjust for market changes or depreciation until renewal.