Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please I need this question to answer ASAP. 2. Elanpigan Insurance Company writes a substantial amount of commercial property insurance. ABC realtor company purchased a

Please I need this question to answer ASAP. image text in transcribed
2. Elanpigan Insurance Company writes a substantial amount of commercial property insurance. ABC realtor company purchased a liability insurance from the Flannigan insurance Company. The contract limit is $1,500,000, premium is $10,000 and deductible is $100,000. Flannigap Insurance Company has a reinsurance treaty agreement with Bermuda Re. Under the terms of the reinsurance contract, Elanugao Insurance retains 25% of the risk on all contracts and transfers 75% of the risk to Bermuda Re. The contract ABC realtor company purchased falls within the treaty agreement. Based on the description, answer the following questions: a. What type of reinsurance contract best describes the reinsurance arrangement that Liability Insur- ance has with Bermuda Re? Circle your answer Pro Rata Per risk excess of lossPer occurrence excess of loss T b. How much of the $10,000 premiums will be retained by Flannigap Insurance Company? c. If ABC realtor company suffers a property loss of $600,000, how much will each of the following parties pay? 1) ABC realtor pays: 2) Flannigan Insurance Company pays: 3) Bermuda Re pays

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Practical Approach Chapters 1-25

Authors: Jeffrey Slater, Mike Deschamps

15th Edition

0137504284, 9780137504282

More Books

Students also viewed these Accounting questions

Question

(3) What does a good leader look like now and in the future?

Answered: 1 week ago