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American Eagle Insurance is a property insurer that entered into a surplus share reinsurance treaty with London Reinsurance Group Inc., American Eagle Insurance has retention
American Eagle Insurance is a property insurer that entered into a surplus share reinsurance treaty with London Reinsurance Group Inc., American Eagle Insurance has retention limit of $ 500,000 on any single building, and up to ten lines of insurance may be ceded to London Reinsurance Group A building valued at $ 5, 500,000 is insured with old Dominion Insurance. Shortly after the policy was issued, a severe windstorm caused a $ 2,000,000 loss to the building. Show your work to answer the questions below: How much of the loss will American Eagle Insurance? How much of the loss will London Reinsurance Group Inc? What is the maximum amount of insurance that American Eagle can write on a single building under the reinsurance agreement? Explain your
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