Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The insurance company Paris signed a reinsurance agreement with the reinsurance company Berlin in the field of auto insurance. According to the terms of this

The insurance company Paris" signed a reinsurance agreement with the reinsurance company "Berlin" in the field of auto insurance. According to the terms of this agreement, Paris transferred to Berlin 40% of each insured Regardless of the size of the policy. The reinsurer Berlin" pays "Paris" a ceding commission of 10% of the reinsurance premium. a) what type of reinsurance contract is this agreement? b) If the insurance company receives an insurance premium of 300 USD under the motor insurance policy for a car valued at 8,000 USD, what will be the amount of the insured premiums paid to the reinsurer for this policy. C). The car insured for 8000USD was damaged in a traffic accident and the amount of the loss amounted to 3.000 USD. How much will be reimbursed by "Paris" and how much by "Berlin"? In case of "Berlin" bankruptcy, how will the insured be reimbursed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Retail Management A Strategic Approach

Authors: Barry Berman, Joel Evans, Patrali Chatterjee

13th Edition

0133796841, 9780133796841

More Books

Students also viewed these General Management questions

Question

1. Why do we trust one type of information more than another?

Answered: 1 week ago