Assignment x6.1 (ii)

Discussion in 'SP7' started by code9063, Mar 2, 2019.

  1. code9063

    code9063 Member

    Hi,

    in the solutions it says the largest risk that could be covered by the surplus treaty is £27.5m. Is it talking about EML?
    i'm confused as I thought EML=1 ( 1 + 10) = £11m
     
    code9063, Mar 2, 2019
    #1
  2. Hemant Rupani

    Hemant Rupani Senior Member

    Largest risk that could be covered by this surplus treaty is 11m(Net of Quota shate, i.e. 1-60%)

    So at gross 11/0.4=27.5
     
    Hemant Rupani, Mar 2, 2019
    #2
  3. code9063

    code9063 Member

    Thanks! The wording of the solution wasn't the best..
     
    code9063, Mar 6, 2019
    #3

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