Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The primary insurer has a quota share treaty with a reinsurer as shown below: The risk premium is decided as 0.002 of the risk amount

image text in transcribed
The primary insurer has a 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 will the reinsurer pay, which is the value of z in the table? (use an integer number for your answer, such as 123456)

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

Globalization Gating And Risk Finance

Authors: Unurjargal Nyambuu, Charles S. Tapiero

1st Edition

1119252652, 978-1119252658

More Books

Students also viewed these Finance questions

Question

What are the challenges associated with tunneling in urban areas?

Answered: 1 week ago

Question

What are the main differences between rigid and flexible pavements?

Answered: 1 week ago

Question

What is the purpose of a retaining wall, and how is it designed?

Answered: 1 week ago

Question

How do you determine the load-bearing capacity of a soil?

Answered: 1 week ago

Question

what is Edward Lemieux effect / Anomeric effect ?

Answered: 1 week ago

Question

Acceptance of the key role of people in this process of adaptation.

Answered: 1 week ago

Question

preference for well defined job functions;

Answered: 1 week ago