Question: plzhelp me Question 3 Cedent, AMG Insurance underwrites shipbuilder risks. It has a 70% quota share treaty with a maximum limit of RM 300,000. Progressive
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Question 3 Cedent, AMG Insurance underwrites shipbuilder risks. It has a 70% quota share treaty with a maximum limit of RM 300,000. Progressive insurance had also purchased multiple surplus treaties consist of 5 lines first surplus treaty, 10 lines second surplus treaty and 15 line third surplus treaty. AMG also protects its retention with per risk excess of loss treaty RM 250,000 excess of RM 50,000. Any excess of capacity is covered by obligatory facultative with a limit of RM 3,000,000 Following are the shipbuilder risks insured by AMG: Risks Ship 1 Ship 2 Ship 3 Ship 4 Ship 5 Sum Insured RM 300,000 RM 1,500,000 RM 3,000,000 RM 6,000,000 RM 12,000,000 a) Based on the data above, calculate the distribution of risks between cedent and reinsurers. (CLO1,C3) (8 marks) b) If Ship 5 suffered a loss of RM 8,000,000 due to lightning, determine the share of losses among cedent and reinsurers. (CL01,C4) (8 marks) Question 3 Cedent, AMG Insurance underwrites shipbuilder risks. It has a 70% quota share treaty with a maximum limit of RM 300,000. Progressive insurance had also purchased multiple surplus treaties consist of 5 lines first surplus treaty, 10 lines second surplus treaty and 15 line third surplus treaty. AMG also protects its retention with per risk excess of loss treaty RM 250,000 excess of RM 50,000. Any excess of capacity is covered by obligatory facultative with a limit of RM 3,000,000 Following are the shipbuilder risks insured by AMG: Risks Ship 1 Ship 2 Ship 3 Ship 4 Ship 5 Sum Insured RM 300,000 RM 1,500,000 RM 3,000,000 RM 6,000,000 RM 12,000,000 a) Based on the data above, calculate the distribution of risks between cedent and reinsurers. (CLO1,C3) (8 marks) b) If Ship 5 suffered a loss of RM 8,000,000 due to lightning, determine the share of losses among cedent and reinsurers. (CL01,C4) (8 marks)
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