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Granite Insurance Company entered into a treaty reinsurance agreement with Rock Solid Reinsurance ( RSR ) . Granite's retention limit is $ 4 0 0

Granite Insurance Company entered into a treaty reinsurance agreement with Rock Solid Reinsurance (RSR). Granite's retention limit is $400,000 and RSR agreed to provide reinsurance for up to $2.0 million. If Granite writes an $800,000 policy for a client and its client recently suffers from a $500,000 loss,(a) How much will Granite pay?(b) How much will RSR pay?

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