Please write your name; EKU id here underwritten by various syndicates who belong to Lloyd's." Describe Lloyd's of London with respect to each of the following? a. Liability of individual members and corporations (20 points) Rubric: 10 points given for the type of liability identified; 15 points given for identification of corporation relationship. b. Types of insurance written (20 points) Rubric: 20 points given for types of insurance written by Lloyd's. c. Financial safeguards to protect insureds (10 points) Rubric: 10 points given for financial safeguards used. 3. (50 POINTS) Delta Insurance is a property insurer that entered into a surplus-share reinsurance treaty with Eversafe Re. Delta has a retention limit of $200,000 on any single building, and up to nine lines of insurance may be ceded to Eversafe Re. A building valued at $1,600,000 is insured with Delta. Shortly after the policy was issued, a severe windstorm caused a $800,000 loss to the building. a. How much of the loss will Delta pay? (20 points) Rubric: 10 points given for the answer; 10 points given for the explanation. b. How much of the loss will Eversafe Re pay? (10 points) Rubric: 5 points given for the answer, 5 points given for the explanation. c. What is the maximum amount of insurance that Delta can write on a single building under the reinsurance agreement? Explain your answer (20 points)Please write your name; EKU id here Rubric: 10 points given for the answer; 10 points given for the explanation. 4. (50 POINTS) Liability Insurance Company writes a substantial amount of commercial liability insurance. A large construction company requests $100 million of liability insurance to cover its business operations. Liability Insurance has a reinsurance contract with Bermuda Re that enables the coverage to be written immediately. Under the terms of the contract, Liability Insurance pays 25 percent of the losses and retains 25 percent of the premium. Bermuda Re pays 75 percent of the losses and receives 75 percent of the premium, less a ceding commission that is paid to Liability Insurance. Based on the preceding, answer the following questions: a. What type of reinsurance contract best describes the reinsurance arrangement that Liability Insurance has with Bermuda Re? (20 points) Rubric: 10 points given for the type of contract identified; 10 points given for the explanation. b. If a $50 million covered loss occurs, how much will Bermuda Re have to pay? Explain your answer. (20 points) Rubric: 10 points given for the answer, 10 points given for the explanation. c. Why does Bermuda Re pay a ceding commission to Liability Insurance? (10 points) Rubric: 10 points given for the explanation.Please write your name; EKU id here RMI 370 Homework Assignment 3 100 points Choose one question from each topic: Topic 5: choose one from question number 1 OR 2 Topic 6: choose one from question number 3 OR 4 1. (50 points) A group of investors are discussing the formation of a new property and liability insurer. The proposed company would market a new homeowners policy that combines traditional homeowner coverages with unemployment benefits if the policyholder becomes involuntarily unemployed. Each investor would contribute at least $100,000 and would receive a proportionate interest in the company. In addition, the company would raise additional capital by selling ownership rights to other investors. Management wants to avoid the expense of hiring and training agents to sell the new policy and wants to sell the insurance directly to the public by selective advertising in personal finance magazines. a. Identify the type of insurance company that best fits the above description. (25 points) Rubric: 10 points given for the type of insurance company identified. 15 points given for explanation. b. Identify the marketing system that management is considering adopting. (25 points) Rubric: 10 points given for the marketing system identified. 15 points given for explanation. 2. (50 points) A newspaper reporter wrote that "Lloyds of London is an association that provides physical facilities and services to the members for selling insurance. The insurance is