Insurer A underwrites a property policy with total value at risk of $ 10 million. To limit its net exposure to this risk, insurer A uses the following facultative reinsurance program: (1) an 80% quota share reinsurance with reinsurer B; (2) an excess of loss reinsurance with reinsurer C as common account' protection for the quota share reinsurance. E.g., the quota share reinsurance treaty could be viewed as the retention of this excess of loss reinsurance. 2. Assume insurer A's tolerable level of risk of this risk is $0.5 million. What would be the attachment point for the excess of loss reinsurance? A. $0.5 million B. $1 million C. $2 million D. $2.5 million E. $3 million 3. If a loss of $5 million occurs, what would be reinsurer C's payment for this loss? A. $0.5 million B. $1 million C. $2 million D. $2.5 million E. $3 million