Delta Insurance is a property insurer that enters into a reinsurance treaty for Eversafe Re. Delta has a retention limit of $200,000 on any single building. A building valued at $1,600,000 is insured with Delta. Shortly after the policy was issued, a severe windstorm caused a $800,000 loss to the building.

1.If the reinsurance is a excess-of-loss treaty with a maximum limit of $1,800,00, how much Delta Insurance has to pay for the loss?

2.If the reinsurance is a surplus-share treaty with nine lines of insurance ceded to Eversafe, how much Delta Insurance has to pay for the loss?