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Suppose that you have two insurance companies. This first one is A. It is a Fire Insurance which has a retention limit of $200,000 (called

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Suppose that you have two insurance companies. This first one is A. It is a Fire Insurance which has a retention limit of $200,000 (called a line) for a single policy, and that four lines, or $800,000, are ceded to the second company which is called company B. B is a reinsurance company. Assume that a $300,000 a) Under a surplus-share treaty method, what is the loss sharing amount for both companies if a b) If A and B companies enter into an excess of loss reinsurance contract and B will cover all losses property insurance policy is issued. Taking the information above, compute the following: 12000$ loss occurs? (Show all work). exceeds 5000S of loss, what would be the loss sharing amount for both companies? (Show all work)

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