Delta Insurance is a property insurer that entered into a surplus-share reinsurance treaty with Eversafe Re. Delta has a retention limit of $250,000 on any single building, and up to eight lines of insurance may be ceded to Eversafe Re. A building valued at $1,500,000 is insured with Delta. Shortly after the policy was issued, a severe windstorm caused a $700,000 loss to the building.

a. How much of the loss will Delta pay?

b. How much of the loss will Eversafe Re pay?