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2. Delta Insurance is a property insurer that entered into a surplus-share reinsurance treaty with Eversafe Re. Delta has a retention limit of $300,000 on

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2. Delta Insurance is a property insurer that entered into a surplus-share reinsurance treaty with Eversafe Re. Delta has a retention limit of $300,000 on any single building, and up to nine lines of insurance may be ceded to Eversafe Re. A building valued at $1,800,000 is insured with Delta, Shortly after the policy was issued, a severe windstorm caused an $600,000 loss to the building a. What is the maximum amount of insurance that Delta can write on a single building under the reinsurance agreement? Explain your answer. b. How much of the loss will Delta pay? c. How much of the loss will Eversafe Re pay

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