Determine the loss-sharing method and compute the shared amount of loss for each of the following cases; Group A; If Jane is fully insured and $100,000 property loss occurred, assume that National insurance company (NIC) and Swiss Re Ltd. entered into an arrangement by which premiums and losses are shared 40-60 respectively.

Group B; Assume that a $8,000,000 property insurance policy is issued, and 50% of insured property damaged by fire. If NIC has a retention limit of $1,000,000 for a single policy, knowing that 10 policies are ceded to Swiss Re Ltd.

Q;

Q

1. Loss sharing method

2.Amount paid to the insured

3.Retention Limit

4.Cession Amount