Apex Health Insurance has a retention limit of $100,000 for a single policy. Apex Health enters into an excess-of-loss per risk treaty with Geneva Re. Geneva Re agrees to pay all losses exceeding $ 100,000 but only to a maximum of $ 1 million of the sum insured. If Apex Health has $1,050,000 loss, how much Geneva Re has to pay? (This is a question with two points) Hint: The maximum $1 million is the "sum insured" in this reinsurance treaty, but not the maximum of reinsurance payment. By definition, the sum insured is the amount insured by ceding company (Apex). The maximum of the sum insured is used as the base of the reinsurance treaty, but it does not always equal the maximum of reinsurance payment. In this Excess of Loss per risk treaty, the maximum sum reinsured amount is $ 1 million minus $100,000. which is $900,000. Geneva Re will pay up to this payment limit, $900,000. Apex should cover the remaining amount $ 50,000 in addition to the retention limit $100,000 of the treaty because of the reinsurance payment limit which is agreed in this treaty. The total payment of Apex after the reinsurance payment is $100,000 plus $50,000 which is $150,000. (use a decimal number, rounded to the nearest 100th, without $ sign. For example, 123456.78)