Given each of the three reinsurance treaty arrangements described below, walk one insurance policy scenario through the treaty reinsurance arrangement, for each calculating and interpreting: i) The insurer's and reinsurer's share of the policy limits, premiums and losses. ii) The loss ratio effects of each on the insurer and reinsurer. *The insurance policy: insures a building for $700,000 for a premium of $8,500, experiencing one loss of $160,000.* i) Treaty reinsurance agreement 1: 25/75 quota-share proportional treaty, in which the treaty provides for a maximum cession of $1,000,000. ii) Treaty reinsurance agreement 2: surplus share proportional treaty, in which the insurer retains a "line" of $50,000. The treaty contains 20 lines and provides for a maximum cession of $1,000,000. iii) Treaty reinsurance agreement 3: excess-of-loss (XL) treaty, in which the insurer retains a line of $50,000, and the treaty provides for a maximum cession of $1,000,000. The reinsurer charges a 1% rate on line. Given each of the three reinsurance treaty arrangements described below, walk one insurance policy scenario through the treaty reinsurance arrangement, for each calculating and interpreting: i) The insurer's and reinsurer's share of the policy limits, premiums and losses. ii) The loss ratio effects of each on the insurer and reinsurer. *The insurance policy: insures a building for $700,000 for a premium of $8,500, experiencing one loss of $160,000.* i) Treaty reinsurance agreement 1: 25/75 quota-share proportional treaty, in which the treaty provides for a maximum cession of $1,000,000. ii) Treaty reinsurance agreement 2: surplus share proportional treaty, in which the insurer retains a "line" of $50,000. The treaty contains 20 lines and provides for a maximum cession of $1,000,000. iii) Treaty reinsurance agreement 3: excess-of-loss (XL) treaty, in which the insurer retains a line of $50,000, and the treaty provides for a maximum cession of $1,000,000. The reinsurer charges a 1% rate on line