1. What type of reinsurance contract is represented by the illustration above?
2. Describe 2 possible loss scenarios that could be covered by this type of reinsurance contract.
3. If a $10 million covered loss occurs, how much will the primary insurance company pay to its insured(s)? Ignore any deductibles. Show and explain your work.
4. If a $10 million covered loss occurs, how much will the reinsurer reimburse to the primary insurance company? Show and explain your work.
5. If a $25 million covered loss occurs, how much will the primary insurance company pay to its insured(s)? Ignore any deductibles. Show and explain your work.
6. If a $25 million covered loss occurs, how much will the reinsurer reimburse to the primary insurance company? Show and explain your work.

$47,500,000 xs $105,000,000 $45,000,000 xs $60,000,000 95% placed $25,000,000 xs $35,000,000 $10,000,000 xs $25,000,000 $10,000,000 xs $15,000,000 Retention