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An insurance company insures a factory against fire for Euro 2,000,000 at a premium rate of 2 per thousand .

<p>It reinsures the risk with a quota share of40% .The reinsurers pay a commission of25% to the insurance company for it is share of the risk.</p> <p>  Find out :-</p> <p>1) What is the gross premium that the insurance company receives for one hundred percent of the risk.</p> <p>2) What is the net reinsurance premium.</p> <p>3) How much will the reinsurer pay a claim of Euro100,000 .</p> <p>        Thanking you , and Happy New Year </p>

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Question added by Mamoun elbaghir abdalla mhamad Eltayeb , Insurance agent / Producer , Albaraka Insurance Company
Date Posted: 2014/12/24
Satheesh Mambally
by Satheesh Mambally , Underwriter/Reinsurance(Dual Role) , SABB TAKAFUL COMPANY (HSBC GROUP)

Answer1) Euro4000

Answer2) Euro1200

Answer3) Euro40,000

Afzal khan
by Afzal khan , Driver , Acfit Middle East FZE

Abu Dhabi National Takaful. Abu Dhabi National Insurance. Al Khazna, RSA, Allianz, or MEDGULF

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