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5 ABC Co. (ceding company) purchases a Surplus Share reinsurance treaty that provides coverage up to $1,000,000. The retention is $100,000. The treaty limit is
5 ABC Co. (ceding company) purchases a Surplus Share reinsurance treaty that provides coverage up to $1,000,000. The retention is $100,000. The treaty limit is 9 lines or 9 times the retention. Assume the ceding company issues a $1,000,000 policy which suffers a $600,000 loss. How much will the ceding company retain? (the retention on the loss) A. $100,000 B. $60,000 C. $900,000 D. $540,000 5 points Save
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