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The primary insurer has a 40% quota share treaty with a reinsurer as shown below: The risk premium is decided as 0.002 of the risk
The primary insurer has a 40% quota share treaty with a reinsurer as shown below: The risk premium is decided as 0.002 of the risk amount (sum insured) The sum insured by the primary insurer is 1,000,000. According to the treaty, the primary insurer retain 60% of the sum insured and the reinsurer accept the 40% of the sum insured. At the end of the insurance period, the amount of losses is reported as 800,000 . How much does the reinsurer accept the risk, which is the value of X in the table? (use an integer number for your answer, such as 123456)
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