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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
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 homeowner's policy is written by Traveler's for $500,000 of coverage on a home in Nevada. A subsequent loss occurs for $300,000. How much will Traveler's, American Re, General Re, Swiss Re pay respectively? Travelers: $37,500; American Re: $112,500; General Re: $75,000; Swiss Re: $75,000 Travelers: $50,000; American Re: $150,000; General Re: $100,000; Swiss Re: $0 Travelers: $60,000; American Re: $180,000; General Re: $60,000; Swiss Re: $0 Travelers: $100,000; American Re: $200,000; General Re: $0; Swiss Re: $0
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