Glassboro Insurance Company has a surplus share treaty with Bermuda Reinsurer and retains a line of $100,000. The treaty contains six lines and provides for a maximum cession of $600,000. Therefore, the retention and reinsurance provide Glassboro Insurance with the ability to issue policies with amounts of insurance as high as $700,000. The following three policies are issued by Glassboro Insurance Company and are subject to the surplus share treaty with Bermuda Reinsurer. 1. Policy A insures Building A for $95,000 for a premium of $4000, with one loss of $80,000. 2. Policy B insures Building B for $800,000 for a premium of $15,000 with a loss of $720.000 Total Glassboro Insurance Bermuda reinsurer Limits 100,000 600,000 6 Line 1 Policy A Sum insured 95,000 95,000 Proportion Premium 4,000 Losses 80,000 Policy B Sum insured 800,000 Proportion Premium 15,000 Losses 720,000 Glassboro Insurance Company has a surplus share treaty with Bermuda Reinsurer and retains a line of $100,000. The treaty contains six lines and provides for a maximum cession of $600,000. Therefore, the retention and reinsurance provide Glassboro Insurance with the ability to issue policies with amounts of insurance as high as $700,000. The following three policies are issued by Glassboro Insurance Company and are subject to the surplus share treaty with Bermuda Reinsurer. 1. Policy A insures Building A for $95,000 for a premium of $4000, with one loss of $80,000. 2. Policy B insures Building B for $800,000 for a premium of $15,000 with a loss of $720.000 Total Glassboro Insurance Bermuda reinsurer Limits 100,000 600,000 6 Line 1 Policy A Sum insured 95,000 95,000 Proportion Premium 4,000 Losses 80,000 Policy B Sum insured 800,000 Proportion Premium 15,000 Losses 720,000