Every answer and its explanation appears here once you have finished the path. Each one then links to the matching glossary entry, where the concept is set out in full with its worked example.
1. The module says business interruption does not pay for what happened. What does it pay for?
The gap with a world that did not exist, and that world is built with documents
Taking last year's margin is a calculation convenience, not the definition: it serves as a starting point and is corrected for everything that would have changed anyway. That is why the adjustment clause exists and why it is not an insurer's maneuver: it also favors the insured in good years. The practical consequence is that a business interruption file is a file of documents before it is a file of figures, and the party that kept comparators as events unfolded wins the argument.
Glossary entry →2. The insurer cites two circumstances: a 45 percent devaluation from a program negotiated with a lender, and a halving of sector sales across all operators, including those that never closed. What should be done with them?
Sort them: the devaluation is unrelated to the peril and enters, the sector collapse flows from the same unrest and stays out
A circumstance flowing from the covered peril is not imported into the counterfactual, otherwise a wide-area event would never indemnify anything: the half the sector lost is the loss, it cannot be used to reduce it. The devaluation, by contrast, stems from a program negotiated with a lender, a cause unrelated to the unrest, and it legitimately lowers the benchmark. Challenging the clause in principle goes nowhere and loses the only ground where the file is won, which is that sorting, document by document. Accepting everything wholesale lets the peril fund its own exclusion.
Glossary entry →3. The subsidiary reopens on August 1 but only regains its sales level in January. The period cap is twelve months. The group closed its calculation on July 31. What did it leave behind?
The tail from August to January, indemnifiable until results are restored within the cap, and simply never claimed
The period runs until results are restored and not until the doors reopen: it is the commonest and costliest confusion in this cover. An operation reopening at thirty percent is still suffering a loss, covered until the cap in months is reached. The tail from August to January may be worth more than the fraction disputed elsewhere, and nobody contests it, it was simply never asked for. It is a silent loss, refused by no one and therefore appearing in no litigation report, which is exactly why it recurs.
Glossary entry →4. What is the decisive document in a counterfactual, according to the module, and on what condition does it persuade?
A comparator untouched by the event, and it persuades only if it was kept as events unfolded
A comparable region of the same country spared by the unrest says what the business would have done without it, which no budget says, since a budget describes an intention rather than a world. And the condition matters as much as the document: a comparator reconstructed afterwards is chosen, therefore contestable, whereas a record kept as events unfolded is suffered. Local administrative statistics are useful and rarely sufficient, because they aggregate affected and spared areas. A later expert report interprets data; it does not replace data nobody kept.
Glossary entry →5. Why is the adjustment clause, in a political crisis, the insurer's principal tool?
Because every circumstance points the same way: in a crisis, almost everything that moves lowers the benchmark
In ordinary times, adjustment circumstances offset one another, some raising the benchmark and others lowering it. In a political crisis the currency falls, demand falls, inputs get dearer, and every element pulls the same way: the tool becomes very powerful without any clause having changed. It is not a disguised refusal, and that must be understood before arguing: the clause remains legitimate, it is simply asymmetric in this context, which makes sorting imported circumstances from peril-driven ones all the more decisive.
Glossary entry →