Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Malath Insurance Company agreed with Saudi Re Reinsurance Company to buy a reinsurance program. This program includes ceding 70% of the sum insured in the
Malath Insurance Company agreed with Saudi Re Reinsurance Company to buy a reinsurance program. This program includes ceding 70% of the sum insured in the quota share treaty and the retention limit in the Surplus treaty is 2,000,000
SR. Assume that Malath agreed to cover a risk with a sum insured equal to 8,000,000 SR and 400,000 SR as a premium. During the contract period, the property was damaged, and the loss was evaluated at 6,000,000 SR
Find the share amounts of the sum insured, premium, and loss for each treaty.
use " Quota share-Surplus method"
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started