The following table relates to risks covered under a surplus reinsurance treaty with five lines and a maximum retention of $1m. Risk Estimated Maximum Loss ($) Retention ($) Lines of cover used Original premium($) Ceded premium ($) 1 5,000,000 1,000,000 A 34,800 B 2 10,000,000 800,000 C 68,000 D (ii) Calculate the figures A, B, C and D in the table above. Can you please explain how we are calculating the figures & what is meant by "Number of lines ceded"
I assume you are referring to Question 9? That's a very broad question Siddhi, you're more likely to get a response if you state which part of the examiners' report you're struggling with. As it happens though this is a question that plenty of people struggle with, and we have an answer to your question already on the discussion forum. Therefore can I point you in that direction? Here’s the link: https://www.acted.co.uk/forums/index.php?threads/apr-2015-q9.11551/ See Chapter 6 page 10. ================================= Finally, might I make two recommendations? I think you're more likely to learn if you work actively through a question rather than relying on others to give you the answer. There are plenty of Practice Questions at the back of Chapter 6 to help you get to grips with exactly this topic. Why not have a go at those and then see if you've learnt enough to tackle this exam question. You might be pleasantly surprised. I do ask you to read our guidance on posting queries. The first two bullet points of our guidance are particularly relevant here. https://www.acted.co.uk/forums/index.php?threads/guidance-on-posting-queries.8779/. Good luck!
