Assume that CEDE Insurance Company has purchased from SS Reinsurance Company a surplus share treaty with a $5,000,000 limit and a retention of $70,000.  CEDE has written three policies.  Policy A insures Building A for $70,000 for a premium of $1,000 with one loss of $12,000.  Policy B insures Building B for $140,000 for a premium of $2,000 with a one loss of $20,000.  Policy C insures Building C for $2,100,000 for a premium of $30,000 with one loss of $50,000.  Compute the insurance amount, premiums, and losses under three policies between the primary insurer and the reinsurer.

Answer rating: 100% (QA)

To compute the insurance amount premiums and losses under the three policies between the primary ins... View the full answer