When a $1 million insured loss occurs and $300,000 of the loss is reinsured, the policy holder of the primary company will receive:

When a $1 million insured loss occurs and $300,000 of the loss is reinsured, the policy holder of the primary company will receive:



A) $1 million from the primary company

B) $1,000,000 from the primary insurer and $300,000 from the reinsurer

C) $700,000 from the primary insurer and $300,000 from the reinsurer

D) fifty percent of the loss from each company



Answer: A

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