65 66 67 68 B E F G H Illustration of Situation 3: Current Reinsurance Program...

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65 66 67 68 B E F G H Illustration of Situation 3: Current Reinsurance Program In Place BNIC incurs one single-family homeowner and automobile fire loss in Greater Boston, Massachusetts; losses of $340,000 and $59,000 respectively; no injuries or liability ensued 627 69 70 BNIC insures damaged home for $376,000 and three autos in garage covered by PAP with $500 OTC deductibles which were total losses Enter N/A in all fields not applicable to this situation 71 BNIC Retention Reinsurer Cession Total 72 73 Situation 3 Totals 74 Amounts of Insurance $ 435,000 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 Losses Excess of Loss (Line 1: $1M) Amounts of Insurance Losses Excess of Loss (Line 2: $1M) Amounts of Insurance Losses Excess of Loss (Line 3: $2M) Amounts of Insurance Losses Excess of Loss (Line 3: $2M) Amounts of Insurance Losses $ 1,000,000 92 1111 93 Catastrophe (X of $2.5M) 94 Amounts of Insurance 95 Losses 96 97 65 66 67 68 B E F G H Illustration of Situation 3: Current Reinsurance Program In Place BNIC incurs one single-family homeowner and automobile fire loss in Greater Boston, Massachusetts; losses of $340,000 and $59,000 respectively; no injuries or liability ensued 627 69 70 BNIC insures damaged home for $376,000 and three autos in garage covered by PAP with $500 OTC deductibles which were total losses Enter N/A in all fields not applicable to this situation 71 BNIC Retention Reinsurer Cession Total 72 73 Situation 3 Totals 74 Amounts of Insurance $ 435,000 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 Losses Excess of Loss (Line 1: $1M) Amounts of Insurance Losses Excess of Loss (Line 2: $1M) Amounts of Insurance Losses Excess of Loss (Line 3: $2M) Amounts of Insurance Losses Excess of Loss (Line 3: $2M) Amounts of Insurance Losses $ 1,000,000 92 1111 93 Catastrophe (X of $2.5M) 94 Amounts of Insurance 95 Losses 96 97