An organization enters into a captive insurance arrangement with a fronting company for an incurred loss retrospective rating plan with a loss limit of $500,000 per occurrence for its workers compensation loss exposures. The captive insurer then purchases excess of loss reinsurance of $1,000,000 for any loss in excess of $1,000,000 per occurrence.

• What is the captive insurer's net loss exposure per occurrence?
• How much does the organization retain per occurrence?
• How much will the reinsurer pay for the loss?
• How much is the captive insurer's loss exposure and net exposure?