The objectives of claim processing are stated as follows; Verification of a covered loss Fair and prompt payment of claims personal assistance to the insured Insurers establish a claims underwriting policy that is consistent with company objectives. As the Managing Director of insurance company that has placed some business abroad with other insurers abroad as part of the annual business plan. The business is worth K 2,000,000.00 in a treaty based on equal share of losses beyond K 800. 000.00. Required: A. Identify three (3) risks the local insurer faces by placing part of the business with foreign based re-insurance companies. Describe two (2) benefits to the local insurer of transferring or sharing losses. [5 MARKS] B. Using a flow chart describe the processing of the claim from the time the Local re-insurer is notified of the claim up the time the local risk carrier informs the insurer abroad. [4 MARKS] C. With the guide of the diagram identify 5 risks that the re-insurer faces in attending to Crafts claim. [5 MARKS] D. What is the re-Insurers obligation if a client suffers a loss of 1200, 000.00 and state how much is payable? [3 MARKS] E. Suppose the client to the primary insurer had paid a premium of K 200, 000, calculate the premium payable to the re-insurer. [3 MARKS] F. If the loss suffered by the insured client was K300,000, how much will the Primary insurer pay its client. [3 MARKS] G. Suppose the client suffered a loss of K 500,000 how much does the primary insurer claim from the Re-insurer. [2 MARKS] [TOTAL: 25 MARKS]