Question: D etermine the below amounts under a pro rata quota & surplus share reinsurance contract using the following scenario s . ABC Insurance has a
Determine the below amounts under a pro rata quota & surplus share reinsurance contract using the following scenarios.
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 Quota Share
| ABC Insurance | XYZ Reinsurer | Total |
Amounts of Insurance |
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Premiums |
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Losses |
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Pro Rata Surplus Share
| ABC Insurance | XYZ Reinsurer | Total |
Amounts of Insurance |
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Premiums |
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Losses |
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