Question 1: (CLO 5) Daman Insurance is an insures that entered into lusurance agreement with AFAQ Pe. Daman has a retention limit of AED 600,000 on any single building, and up to 5 lmes of insurance may be ceded to AFAQ Re. A building valued at AED 1,500,000 as incured with Daman. Shortly after the policy was issued, a severe windstorm caused a AED 800,000 loss to the building a. What type of reinsurance contract best describes the reinsurance arrangement between Daman and AFAO reinsurance? b. How much of the loss will Daman pay? c. How much of the loss will AFAQ Re pay? d. What is the maximum amount of insurance that Daman can write on a single building under the reinsurance agreement? Explain your answer. e. Explain the expected reasons that push Daman for reinsurance with AFAQ Re? Question 1: (CLO 5) Daman Insurance is an insures that entered into lusurance agreement with AFAQ Pe. Daman has a retention limit of AED 600,000 on any single building, and up to 5 lmes of insurance may be ceded to AFAQ Re. A building valued at AED 1,500,000 as incured with Daman. Shortly after the policy was issued, a severe windstorm caused a AED 800,000 loss to the building a. What type of reinsurance contract best describes the reinsurance arrangement between Daman and AFAO reinsurance? b. How much of the loss will Daman pay? c. How much of the loss will AFAQ Re pay? d. What is the maximum amount of insurance that Daman can write on a single building under the reinsurance agreement? Explain your answer. e. Explain the expected reasons that push Daman for reinsurance with AFAQ Re