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<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>
Answer1) Euro4000
Answer2) Euro1200
Answer3) Euro40,000