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 …