Surplus Share Practice A primary insurer has a surplus share treaty with a reinsurer and retains a line of $30,000. The treaty contains 7 lines. 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. 1. What is the maximum cession under the treaty? 2. If the primary insurer wants a policy covered under the treaty, the amount of insurance offered should be no greater than 2. Primary Reinsurer Total Policy A Amount of Insurance Premiums Losses Policy B Amount of Insurance Premiums Losses Policy C Amount of Insurance Premiums Losses Surplus Share Practice A primary insurer has a surplus share treaty with a reinsurer and retains a line of $30,000. The treaty contains 7 lines. 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. 1. What is the maximum cession under the treaty? 2. If the primary insurer wants a policy covered under the treaty, the amount of insurance offered should be no greater than 2. Primary Reinsurer Total Policy A Amount of Insurance Premiums Losses Policy B Amount of Insurance Premiums Losses Policy C Amount of Insurance Premiums Losses