Question: Continuing on from problem 5, suppose the insurer chose to use the excess of loss / non- proportional method. How much loss exposure would

Continuing on from problem 5, suppose the insurer chose to use the

Continuing on from problem 5, suppose the insurer chose to use the excess of loss / non- proportional method. How much loss exposure would the reinsurer assume? How much premium might the reinsurer receive for assuming this risk? Suppose a loss of $60,000 occurred. How much of that loss would the insurer pay? How much would the reinsurer pay?

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