For Q04 to Q11

The primary insurer and the reinsurer have entered into a surplus-share arrangement. The

primary insurer has a retention limit of RM200,000 (called a line) for a single policy, and that

four lines are ceded to the reinsurer.

Q04 How much is the maximum amount of insurance can be ceded to the reinsurer?

RM____________________

Q05 How much is the total underwriting capacity of the primary insurer?

RM____________________

Assume that a RM200,000 property insurance policy is issued and there is a loss of

RM140,000.

Q06 How much is assumed by primary insurer? RM____________________

Q07 How much is assumed by reinsurer? RM____________________

Assume that a RM700,000 property insurance policy is issued and there is a loss of

RM140,000.

Q08 How much is assumed by primary insurer? RM____________________

Q09 How much is assumed by reinsurer? RM____________________

Assume that a RM1 million property insurance policy is issued and there is a loss of

RM140,000.

Q10 How much is assumed by primary insurer? RM____________________

Q11 How much is assumed by reinsurer? RM____________________