Malath Insurance Company agreed with Saudi Re Reinsurance Company to buy a reinsurance program. This program includes ceding 70% of the sum insured in the quota share treaty and the retention limit in the Surplus treaty is 2,000,000 SR. Assume that Malath agreed to cover a risk with a sum insured equal to 8,000,000 SR and 400,000 SR as a premium. During the contract period, the property was damaged, and the loss was evaluated at 6,000,000 SR.

Find the share amounts of the sum insured, premium, and loss for each treaty?

Answer rating: 100% (QA)

To determine the share amounts of the sum insured premium and loss for each treaty we need to consider the reinsurance program agreed upon by Malath I... View the full answer