Exam DISC-RM Practice Question 252
Study guide: Exam DISC-RM
An insurer cedes 25% of a book with $20 million of written premium under a quota share with a 30% ceding commission. Losses on the book are $12 million. Ignoring the reinsurer's own expenses and investment income, what is the reinsurer's underwriting result on the treaty?
- A) A loss of $1.0 million
- B) A gain of $0.5 million
- C) A gain of $2.0 million
- D) A gain of $3.5 million
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