1. Sunset Property Insurer has a surplus-share reinsurance treaty with Landon Reinsurer. Sunset has a retention limit of $300,000 on any single building, and up to 6 lines of insurance may be ceded to Landon Re.

1. What is the maximum amount of insurance that Sunset can write on a single building under the reinsurance agreement? (1 point)

b. A building valued at $1,500,000 is insured with Sunset. A fire causes a $750,000 loss to the building. How much will Sunset pay? How much will Landon Re pay?