reinsurance

[kassem]

Max. retention for an insurance company is US$ 500,000 And has the following reinsurance treaties.
quota share 50% Max. retention US$ 1,000,000
Surplus one 10 lines
Surplus second 10 lines
x of loss 400,000/= in excess of US$ 400,000 over US$ 100,000/=
The cedant company has got a risk with sum insured in US$ 20 MILLION,
1)How will the risk ( Sum Insured) be distributed?
2)if a loss happened in the amount of US$ 18 Million. How would this loss be distributed among all treaties?i.e. between the original insurer and re-insurer?
thank you

[NORMANTHEDOG]

ask a mathtician

[kassem]

I am asking a Reinsurance Manager in an Insurance company.

[NORMANTHEDOG]

why ask us idiots then