PROBLEM $1$

December $31,2026$

BALANCE SHEET

$\backslash$table$[[$Cash Stocks and,Assets,,$],[$$$10,000,000,$UPR,$],[$$$36,000,000,$Loss Reserve,$50],[,$Policyholdt,$$40,000,000],[$TOTAL$,\backslash$table$[[]],,$$$46,000,000],[,$$$18,000,000$ Written all on December $31,2026],[$Premium u Expenses$]]$

January $1,2027$

WITHOUT REINSURANCE:

BALANCE SHEET

$\backslash$table$[[$Cash$,$UPR$],[$Stocks and Bonds,Loss Reserves$],[$TOTAL$,$Policyhoirtave curnlue$]]$

WTH REINSURANCE:

$70\%$ quota share and $28\%$ commission

BALANCE SHEET

Assets

Cash

Stocks and Bonds $9\mathrm{.}072,000$

$3,0,000,000$

TOTAL $$

Liabilities

UPR

Loss Reserves

Policyholdare' surnlus