Huge Insurance Company is a property insurer that is interested in protecting itself against cumulative losses that exceed $200 million during the year.This protection can best be obtained using

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An excess-of-loss reinsurance treaty would best suit the needs of Huge Insurance Company. This is because an excess-of-loss treaty provides protection against catastrophic losses that exceed a certain predetermined amount, in this case, $200 million. It is a more cost-effective option compared to quota-share or surplus-share treaties, which provide more comprehensive coverage but at a higher cost. A reinsurance pool may not provide adequate protection against such large losses, and therefore, it is not the best option for Huge Insurance Company.

Huge Insurance Company Is a Property Insurer That Is Interested