Durant Fire Insurance has a retention limit of BD 100,000 and ceded the remaining BD 200,000 to

Fantastic news! We've Found the answer you've been seeking!

Question:

Durant Fire Insurance has a retention limit of BD 100,000 and ceded the remaining BD 200,000 to Cury Fire Insurance Company.

Considering the reinsurance agreement entered by both insurance company, compute the following;

a. Total Underwriting Capacity as an effect ceding.

b. Distribution of loss if the underwriting value of the loss is BD 250,000 and the actual incurred loss is BD 12,000.

Related Book For answer-question

Principles of Risk Management and Insurance

ISBN: 978-0132992916

12th edition

Authors: George E. Rejda, Michael McNamara

See More Books

Posted Date: Jul 10, 2022 08:00 AM

See More Questions

Assume that Apex Fire Insurance has a retention limit of $200,000 (called a line) for a single policy, and that four lines, or $800,000, are ceded to Geneva Re. Assume that a $500,000 property...
Delta Insurance is a property insurer that entered into a surplus-share reinsurance treaty with Eversafe Re. Delta has a retention limit of $200,000 on any single building, and up to nine lines of...
(a) What is an open-perils coverage? (b) Name and describe the clause that requires all owners to insure 80 percent of their property value without penalty on the insureds losses recovery (c) Based...
In September, Larson Inc. sold 45,000 units of its only product for $438,000, and incurred a total cost of $405,000, of which $43,000 was fixed costs. The flexible budget for September showed total...
You have a savings account in which you leave the funds for one year without adding or withdrawing from the account. What would you rather have: a daily compounded rate of 0.045%, a weekly compounded...
Given two generating units with their respective variable operating costs as \[ \begin{array}{ll} \mathrm{C}_{1}=0.01 \mathrm{P}_{\mathrm{G} 1}^{2}+2 \mathrm{P}_{\mathrm{G} 1}+100 \$ / \mathrm{hr} &...
Using the SLR method, calculate the auxiliary energy required in March for a $2000 \mathrm{ft}^{2}$, NLC 12,000 Btu/F-day house in Boston with a $150 \mathrm{ft}^{2}$, night-insulated...
Cost data for Bedford Manufacturing company for the month ending May 31, 2012, as follows: a. Prepare a cost of goods manufactured statement for May 2012. b. Determine the cost of goods sold for...
Swiss Banks, like UBS and Credit Suisse, have a culture ofsecrecy for their depositors, and this culture has been supportedby Swiss government policy. What problems has this policy causedfor the...
Evaluate the following pure-yield pickup swap: You currently hold a 20-year, AA-rated, 9.0 percent coupon bond priced to yield 11.0 percent. As a swap candidate, you are considering a 20-year,...
Alok can mow the garden in 10 days, Bikram in 15 days and Dilip in 20 days. How soon the garden be mown if Alok is assisted by Bikram on one day and by Dilip on the next day alternately? 6 1. 8 days...
How can gamified systems help create cognitive apprenticeships?
What is Blooms Taxonomy, and how does the framework apply to our practice?
What is cognition and memory?
Review your concepts and identify the ways that these can best support your goals. Distinguish which of your ideas will directly or indirectly influence the generation of data or activity you want to...
How does the Zone of Proximal Development relate to gamified systems?
1) Find and describe the cache configuration in your mobile phone CPU and in your computer CPU (laptop)? How many levels is the cache? Give details for L1 instruction and data caches? Number of...
Which of the following is FALSE regarding the purchasing power parity (PPP). a. The PPP is a manifestation of the law of one price b. The PPP says that a country with a higher expected inflation can...
Explain the following legal doctrines: a. Misrepresentation b. Concealment c. Warranty
Workers compensation laws provide considerable financial protection to workers who have a job-related accident or disease. a. Explain the fundamental legal principles on which workers compensation...
Explain each of the following characteristics of a typical insurance plan. a. Pooling of losses b. Payment of fortuitous losses c. Risk transfer d. Indemnification
The W14 $\times 26$ structural A-36 steel member is used as a 20 -ft-long column that is assumed to be fixed at its top and fixed at its bottom. If the 15-kip load is applied at an eccentric...
The W14 $\times 26$ structural A-36 steel member is used as a column that is assumed to be fixed at its top and pinned at its bottom. If the 15-kip load is applied at an eccentric distance of 10...
Determine the maximum eccentric load $P$ the 2014-T6aluminum-alloy strut can support without causing it either to buckle or yield. The ends of the strut are pin connected. a $150 mm 150 mm 100 mm...

Durant Fire Insurance has a retention limit of BD 100,000 and ceded the remaining BD 200,000 to

Question:

Expert Answer:

a Total Underwriting Capacity as an effect ceding Total unde... View the full answer

Principles of Risk Management and Insurance

Students also viewed these accounting questions