Selfie Industries $($SI$)$ is an electronics company with $200$ fulltime workers. SI self$-$funds its mandated employer sponsored workers compensation insurance program. Due to its relatively small size, SI is concerned that unexpectedly high medical expenses incurred by its workers could seriously impair its cashflows. As a result, SI buys a $$50,000$ stop loss reinsurance policy from Tight$-$rein Reinsurers. SI also buys a $125\%$ aggregate stop loss policy from the Tight$-$rein Reinsurers. SI forecasts the expected loss for the entire plan will equal $$600,000$ for the coming year. $(6$ points, $2$ points each$)$

The total self$-$funded losses incurred by SI over the year equal $$700,000.$ Based on the aggregate stop loss coverage, how much of the $$700,000$ loss will be paid by Tight$-$rein and how much will be paid by SI$?$

Redo $3$a$,$ assuming that the total losses equal $$800,000.$

Electra, an employee at SI$,$ incurs $$70,000$ in medical expenses after suffering burns in a workplace fire. How much of the $$70,000$ loss will be paid by Tight$-$rein and how much will be paid by SI$?$