Sugartown Insurance issued a policy with a limit of $20 million for a premium of $3,200,000 and ceded 40% of the premium to Coverall Reinsurance per its pro rata agreement. The policyholder experienced a $7,200,000 loss, which is promptly submitted to Sugartown for reimbursement. Assuming the loss submitted is covered, how much of the loss is retained by the primary insurer? Available answer options Select only one option A $1,280,000 B $1,920,000 C $2,880,000 D $4,320,000