A primary insurance company has a 200,000 retention limit. The company purchases a catastrophe reinsurance treaty, which provides the following coverage: Layer 1: 75% of 100,000 excess of 200,000 Layer 2: 80% of 150,000 excess of 300,000 Layer 3: 85% of 350,000 excess of 450,000 The primary insurance company experiences a catastrophe loss of 650,000. Calculate the total loss retained by the primary insurance company.
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A primary insurance company has a 200,000 retention limit. The company purchases a catastrophe reins...
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