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>