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Delta Insurance Company Has a Surplus-Share Treaty with Eversafe Reinsurance

Question 22

Multiple Choice

Delta Insurance Company has a surplus-share treaty with Eversafe Reinsurance.Delta has a retention limit of $200,000,and nine lines of insurance are ceded to Eversafe.How much will Eversafe pay if a $1,600,000 building insured by Delta suffers an $800,000 loss?


A) $600,000
B) $700,000
C) $720,000
D) $800,000

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