A quota share reinsurance treaty has flat-rate commission of 20% and a fixed-rate profit commission of 10%. The RE-premium is $ 150,000. In its first year, the treaty makes a loss. How much combined commission, if any, will be payable by the re-insurer? A SR 30,000 B. Nil. C SR 22,250 D SR 7,500
A quota share reinsurance treaty has flat-rate commission of 20% and a fixed-rate profit commission of 10%. The RE-premium is $ 150,000. In its first year, the treaty makes a loss. How much combined commission, if any, will be payable by the re-insurer? A SR 30,000 B. Nil. C SR 22,250 D SR 7,500
Chapter20: Short-term Financing
Section: Chapter Questions
Problem 11QA
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