Primary Insurance Company (PIC) signed a pro rata reinsurance treaty with XYZ Reinsurance. Under the agreement, PIC and XYZ share premiums and losses on a one-third (PIC), two-thirds (XYZ) basis. PIC wrote $1.2 million in premiums. This coverage produced $900,000 in losses. How will PIC and XYZ share the premiums and losses? Available answer options Select only one option A PIC and XYZ will each receive $600,000 in premiums, and each company is responsible for $450,000 of the losses. B PIC receives $300,000 in premiums and pays $225,000 in losses; XYZ receives $900,000 in premiums and pays $675,000 in losses. C PIC receives $400,000 in premiums and pays $300,000 in losses; XYZ receives $800,000 in premiums and pays $600,000 in losses. D PIC receives $800,000 in premiums and pays $600,000 in losses; XYZ receives $400,000 in premiums and pays $300,000 in losses