Ask Your Peers  Is sales to a wholly owned subsidiary to be included in the rating exposure? (Closed)

I have a company that imports products made in Germany to the US location. The US location then transfers some of the products to the Canada location for the cost of the goods. Is the money received from the Canada location by the US location to be included in the rating exposure for the US location?

If there is anyone out there that knows the answer to this question, I would appreciate the feedback.

Example: Sale of imported goods within the US $6,000,000
Sale of products to Canada location $3,000,000
Records appear to show a total sales volume of $9,000,000

The Canada location exposure is $3,000,000
Is the US location exposure $6,000,000 or $9,000,000

The ISO Commercial Lines Manual has or had a rule 27 applicable to Manufacturing and Processing Risks that stipultated that all sales of goods from one company to another (inter-company) are to be excluded in the gross sales. The only way to deduct it would be to attach the Exclusuion Intercompany Produuct Suits Endorsement CG2141. In doing so you void the Separation of insureds provision in this regard.