Granite Insurance Company entered into a treaty reinsurance agreement with RockSolid Reinsurance (RSR). Granite's retention limit is $400,000 and RSR agreed toprovide reinsurance for up to $2.0 million. If Granite writes an $800,000 policy, RSRis responsible for 50 percent of the losses. If Granite insures a $1.6 million risk, RSRis responsible for 75 percent of any losses. What type of reinsurance arrangementdid Granite enter into with RSR?ماA) reinsurance poolB) surplus share reinsuranceC) facultative reinsuranceD)excess of loss reinsurance

As a stronghold of contractual security, insurance protects against the unpredictability of the…

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