Three insurance companies agree to jointly insure a cargo ship for $38.6 million. If insurers A, B,

Question:

Three insurance companies agree to jointly insure a cargo ship for $38.6 million. If insurers A, B, and C allocate premiums received and accept the risk in the ratio 3 : 8 : 5, respectively:
a. How will the annual premium of $900,000 be distributed?
b. What is the maximum claim exposure of each insurer?