Quota Share Practice

A primary insurer has a quota share treaty with a reinsurer. The treaty has a $$300,000,$ a retention of $30\%$ and a cession of $70\%.$ The following three policies are issued by the primary insurer and are subject to the pro rata treaty.

Policy A insures a building for $$45,000$ for, a premium of $$1,100,$ with one loss of $$10,000.$

Policy B insures a building for $$200,000$ for a premium of $$2,250,$ with one loss of $$1,200.$

Policy $C$ insures a building for $$100,000$ for a premium of $$1,500,$ with one loss of $$5,220.$

Show the division of insurance, premiums and losses under the treaty.

Primary

Reilssurer

Total

Policy A

Amount of Insurance

Premiums

Losses

$\backslash$table$[[,,45,000\mathrm{.}00$