Q.Trust insurance company has a surplus share treaty with ABC insurer and retains a line of 100,000$. The treaty contains five lines and provides for a maximum cession of 500,000$. Therefore, the retention and reinsurance provide the ability to issue up to 600,000$. Trust insurance company issued a 250,000$ policy for a premium of 6,000$ with one loss of 75,000$. (Answer the following questions) Amount of insurance covered by ABC is__________ Select one: a. 250000 b. 150000 c. 100000 d. 200000
Q.Trust insurance company has a surplus share treaty with ABC insurer and retains a line of 100,000$. The treaty contains five lines and provides for a maximum cession of 500,000$. Therefore, the retention and reinsurance provide the ability to issue up to 600,000$. Trust insurance company issued a 250,000$ policy for a premium of 6,000$ with one loss of 75,000$. (Answer the following questions) Amount of insurance covered by ABC is__________ Select one: a. 250000 b. 150000 c. 100000 d. 200000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q.Trust insurance company has a surplus share treaty with ABC insurer and retains a line of 100,000$. The treaty contains five lines and provides for a maximum cession of 500,000$. Therefore, the retention and reinsurance provide the ability to issue up to 600,000$. Trust insurance company issued a 250,000$ policy for a premium of 6,000$ with one loss of 75,000$. (Answer the following questions)
Amount of insurance covered by ABC is__________
Select one:
a. 250000
b. 150000
c. 100000
d. 200000
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