An underwriter is requested to underwrite a tyre manufacturing plant.
The sums insured are: Fire R50 000 000
Loss of profits R30 000 000
The underwriter has a net line of R2 000 000 and can take an additional 50% if the risk involves Fire and Loss of profit.
The underwriter has a nine-line surplus treaty.
Under the above scenario …

Question

An underwriter is requested to underwrite a tyre manufacturing plant.  
 The sums insured are: Fire   R50 000 000 
 Loss of profits       R30 000 000  
 The underwriter has a net line of R2 000 000 and can take an additional 50% if the risk involves Fire and Loss of profit.  
 The underwriter has a nine-line surplus treaty. 
 Under the above scenario …

Answer

facultative reinsurance of R50 000 000 will have to be placed.

Answer

no facultative reinsurance is required.

Answer

the Surplus lines is R27 000 000.

Answer

the total net line is R2 000 000.

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An underwriter is requested to underwrite a tyre manufacturing plant. The sum...

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