Interpretation A: Mr. Liu, we’ve discussed the matters like price, payment, and packing. (1)Now I’d like to know what kind of insurance coverage you have in mind for this batch of DVD players. B: Considering our deal is based on CIF terms, we’d like to have it covered under WPA. A: Is the damage of the goods included in WPA? B: No. It belongs to the Breakage Risk. A: Could you cover the Breakage Risk for us, then? B: Certainly. (2)But the Breakage Risk is classified under Extraneous Risks. If it is required, the extra premium incurred will be for the buyer’s account. That’s the international practice. A: I see. One more thing here. We’d like to have the goods insured for 130% of the invoice value. Can that be arranged? B: Yes, but I have to point out that we usually cover the insurance for 110% of the invoice value. (3)Thus the premium for the difference between 130% and 110% of the invoice value should be borne by you. A: You can rest assured that we’ll pay for the extra premium above 110% of the invoice value. B: That’s OK. Any more questions? A: Yes. Could you tell me how you calculate the insurance premiums? B: (4)In brief, the premium is calculated according to the premium rate of the risk to be covered. As this transaction is concluded on WPA, the premium rate will be 0.3%. And the premium will be 0.3% of the total insured value. A: It sounds reasonable. Well, I’ve got a last question. How long is the period from the commencement to the termination of the insurance? B: (5)The cover shall be limited to 60 days upon discharge of the insured goods from the seagoing vessel at the final port of discharge. A: Oh, I see. Thanks a lot.