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3. An insurance company has quota share treaty with two reinsurers (A and B). The retention limit of the insurance company is set to 60%.
3. An insurance company has quota share treaty with two reinsurers (A and B). The retention limit of the insurance company is set to 60%. Reinsurer A has a share of 30% on the loss with a limit of 100.000.USD, whereas Reinsurer B has a share of 10% on the claims with an upper limit given as 50,000.USD. Given the insured value of 2 million USD and under the assumption that no excess loss agreement is done, determine the distribution of a loss amount of 600,000.USD among insurance company and its reinsurers
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