Question: 4. Determine the below amounts under a pro rata quota & surplus share reinsurance contract using the following scenarios. (10 points) ABC Insurance has a

 4. Determine the below amounts under a pro rata quota \&

4. Determine the below amounts under a pro rata quota \& surplus share reinsurance contract using the following scenarios. (10 points) ABC Insurance has a quota share treaty with XYZ Reinsurer. The treaty has a $500,000 limit, a retention of 40% and a cession of 60%. ABC Insurance has a surplus share treaty with XYZ Reinsurer and retains a line of $35,000. The treaty contains a maximum cession of $250,000. Policy insures a building for $150,000 for a premium of $2,000, with one loss of $10,000. Pro Rata Surplus Share

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