ACIG insurance company has a stop-loss reinsurance agreement with Saudi Re reinsurance company that the pool of premiums equals 10,000,000 SR. This agreement identified the priority as 60% of the insurance premiums. Moreover, there is a 20% copayment above the priority. 

Find the participation for each company in two different years if it assumed that the total claims in the first year is 5,000,000 SR and in the second year is 8,000,000 SR.

Answer rating: 100% (QA)

To find the participation for each company in two different years under the stoploss reinsurance agreement you can follow these steps Given informatio... View the full answer