5. ABC Insurance company cedes three risks under a surplus share reinsurance treaty with Reinsurer XYZ. Insurer ABC's line is $5 million. Reinsurer XYZ agrees to accept the 4-line maximum. The values of the sum insured, premiums, and claims are as follows. (16 marks) Risk Sum Insured (million) Original Premium Original Claim A B | $30 $2 $10 $30,000 $2,000 $10,000 $24,000 $1,000 $8,000 5.1 Explain what Insurer ABC's line of $5 million is? (4 marks) 5.2 What is the gross capacity (including insurer's retention) for Risk A under this treaty? (4 marks) 5.3 What is insurer ABC's share of the original premium for Risk A under this treaty? (4 marks) 5.4 What amount would Reinsurer XYZ pay for the claims of Risk C under this treaty? (4 marks) 5. ABC Insurance company cedes three risks under a surplus share reinsurance treaty with Reinsurer XYZ. Insurer ABC's line is $5 million. Reinsurer XYZ agrees to accept the 4-line maximum. The values of the sum insured, premiums, and claims are as follows. (16 marks) Risk Sum Insured (million) Original Premium Original Claim A B | $30 $2 $10 $30,000 $2,000 $10,000 $24,000 $1,000 $8,000 5.1 Explain what Insurer ABC's line of $5 million is? (4 marks) 5.2 What is the gross capacity (including insurer's retention) for Risk A under this treaty? (4 marks) 5.3 What is insurer ABC's share of the original premium for Risk A under this treaty? (4 marks) 5.4 What amount would Reinsurer XYZ pay for the claims of Risk C under this treaty? (4 marks)