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Under a surplus-share agreement, Gulf Insurance has a retention limit of $488,930 per exposure unit and can transfer $1.740,400 to Bahrain Re. Gulf insured a

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Under a surplus-share agreement, Gulf Insurance has a retention limit of $488,930 per exposure unit and can transfer $1.740,400 to Bahrain Re. Gulf insured a shopping center valued at $1.880,500. Two months later a minor fire caused a loss of $30,000. How much will the reinsurer pay towards the loss? (2 marks)

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