12. The insurer operates under the obligatory reinsurance programme with the ceiling amount of 80 million....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
12. The insurer operates under the obligatory reinsurance programme with the ceiling amount of 80 million. The programme combines in a hierarchical order three types of cover: Quota Share at the bottom, then Surplus and the Excess of Loss on the top. The Surplus secures retention left after Quota Share and the Excess of Loss secures retention left after the Surplus. Below are details on each type of cover: a)Quota Share 40% b) Surplus Z=3 million; L-4 lines of cover c) 3 million XL over 15 million Calculate the cedant's share in the claim of 50 million from the policy with the insured sum of 50 million 12. The insurer operates under the obligatory reinsurance programme with the ceiling amount of 80 million. The programme combines in a hierarchical order three types of cover: Quota Share at the bottom, then Surplus and the Excess of Loss on the top. The Surplus secures retention left after Quota Share and the Excess of Loss secures retention left after the Surplus. Below are details on each type of cover: a)Quota Share 40% b) Surplus Z=3 million; L-4 lines of cover c) 3 million XL over 15 million Calculate the cedant's share in the claim of 50 million from the policy with the insured sum of 50 million
Expert Answer:
Answer rating: 100% (QA)
To calculate the cedants share in the claim we need to follow the hierarchical order of the reinsurance program and calculate the amount covered by ea... View the full answer
Related Book For
Principles of Risk Management and Insurance
ISBN: 978-0132992916
12th edition
Authors: George E. Rejda, Michael McNamara
Posted Date:
Students also viewed these finance questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...
-
Write a program that takes an integer command-line argument n and creates an n-by-n boolean array a[][] such that a[i][j] is true if i and j are relatively prime (have no common factors), and false...
-
Use the Lagrange multiplier test to test the hypothesis in Exercise 1.
-
A flow field is characterized by the stream function \(\psi=3 x^{2} y-y^{3}\). Demonstrate that the flow field represents a twodimensional incompressible flow. Show that the magnitude of the velocity...
-
What pleading is used to commence a lawsuit?
-
On January 1, 2011, Brendan, Inc., reports net assets of $760,000 although equipment (with a four year life) having a book value of $440,000 is worth $500,000 and an unrecorded patent is valued at...
-
Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity...
-
Trim the branches in the following game tree to solve the game depicted: High 10,5) Low (6,3) High (4,15) Top Andre Basie Up Bottom Andre Low (5,7) Andre High (13,3) Down TopAndre Low (22,5) High...
-
Emmanu Counting principle involving a specified arrangement A troupe of 9 dancers is going to line up on stage. Of these dancers, 5 are wearing black and 4 are wearing red. A dancer wearing black...
-
How could the non-cash cost such as the depreciation be considered if you want to find out the break-even point? Explain that with a numerical example.
-
List and briefly explain: (a) employees' required benefits, (b) employees' optional benefits.
-
What are the major do's and don'ts in applicants' interviews?
-
List at least 10 of the good characteristics that the employee evaluation process should demonstrate.
-
What does the constant x, and (1 x) signify? Where, and how are they used?
-
Can linear and nonlinear optimization problems use the same approach to find a solution? For example, if the GRG algorithm is used to solve a nonlinear optimization problem, will it work to solve a...
-
(a) As Section 17.3 discusses, high-frequency sound waves exhibit less diffraction than low-frequency sound waves do. However, even high-frequency sound waves exhibit much more diffraction under...
-
Briefly explain the personal liability coverage (Coverage E) in Section II of the homeowners policy.
-
When commercial crime insurance is written on a loss-sustained basis, the policy contains a provision called loss sustained during prior insurance not issued by us or any affiliate. Explain the...
-
Reinsurance can be used by an insurer to solve several problems. Assume you are an insurance consultant who is asked to give recommendations concerning the type of reinsurance plan or arrangement to...
-
A scientist wants to determine whether people who live in places with high levels of air pollution get more colds than people in areas with little air pollution. Do you think it is possible to design...
-
Draw a simple random sample of eight animals from the list of 40 animals in the table. Exercises 2124 refer to the population of animals in the following table. The population is divided into four...
-
In the 1936 presidential election, Republican candidate Alf Landon challenged President Franklin Roosevelt. The Literary Digest magazine conducted a poll in which they mailed questionnaires to more...
Study smarter with the SolutionInn App