Medgulf insurance company and Saudi Re reinsurance company made a quota-share treaty reinsurance agreement by ceding 60%
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Question:
Medgulf insurance company and Saudi Re reinsurance company made a quota-share treaty reinsurance agreement by ceding 60% of the sum insured. One month ago, Medgulf received 20,000 SR as a premium for covering a building with sum insured equals 4,000,000 SR against fire risks. Three days ago, this building suffered a fire that caused a loss of 2,000,000 SR.
Find the share of sum insured, premium, and loss for each of the insurer and reinsurer.
Related Book For
Principles of Risk Management and Insurance
ISBN: 978-0132992916
12th edition
Authors: George E. Rejda, Michael McNamara
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