Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. assume an insurance company (insurer c: ceding com

Assume an insurance company (insurer C: ceding company) has written insurance coverage to a building,...

60.1K

Verified Solution

Question

Finance

image
image
Assume an insurance company (insurer C: ceding company) has written insurance coverage to a building, which worth 30 million dollars. To cover that business, insurer C has the following reinsurance arrangements: First layer of reinsurance, $7 million in excess of $5 million will be covered by reinsurer A. Another layer of $10 million will be covered by reinsurer B. Everything that is residual will be covered by insurer C (the ceding company). A. If there is a loss of $3 million, how much is each company paying? (Please note that even though some company may have $0 payout, you still need to point out that they are paying $0) B. If there is a loss of $20 million, how much is each company paying? C. What is the maximum amount each company could possibly pay

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students