Assume a pro rata treaty reinsurance agreement with $35\%$ retention. Further assume a

primary insurance contract with limits of $$2,500,000,$ premiums of $$20,000$ and deductible

$$10,000$ fall within the treaty's definition.

If a loss of $$8,000$ occurs, the policyholder would pay

the primary insurer would pay

and the reinsurer would

pay

If a loss of $$250,000$ occurs, the policyholder would pay

$,$ the primary insurer would pay

and the reinsurer would

pay