Question
All Insure issued a policy for $10 Million Auto liability. The underwriter, following company underwriting guidelines to retain only $5 Million liability risk, placed a
- All Insure issued a policy for $10 Million Auto liability.
The underwriter, following company underwriting guidelines to retain only $5 Million liability risk, placed a facultative excess of loss reinsurance contract for $5 million with ReinsureRE.
The insured caused a pile-up car/truck collision with total loss amount of $8 Million in loss payments.
How much of the $8 Million will be covered by the excess of loss contract?
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
