Traveler's Insurance Company enters into the following surplus-share treaty: Traveler's: retains $100,000 (1-line) for each homeowner's policy written American Re: first surplus that takes up to 3 lines of insurance General Re: second surplus that takes up to 2 lines of insurance Swiss Re: third surplus that takes up to 2 lines of insurance a) What is the capacity (maximum amount of insurance coverage) that Traveler's can write on a single policy? b) A homeowner's policy is written by Traveler's for $500,000 of coverage on a home in Nevada. A subsequent loss occurs for $240,000. How much will Traveler's, American Re, General Re, Swiss Re pay respectively