ET Insurance Company cedes to MJ Insurance Company $60,000 of a $100,000 exposure on an excess of loss basis. A loss occurs for $60,000.

ET Insurance Company cedes to MJ Insurance Company $60,000 of a $100,000 exposure on an excess of loss basis. A loss occurs for $60,000.



A) MJ pays $36,000; ET pays $24,000.

B) MJ pays $20,000; ET pays $40,000.

C) MJ pays $40,000, ET pays $20,000.

D) MJ pays $30,000; ET pays $30,000.



Answer: B


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