•Alpha Insurance has a 70% quota share treaty with a reinsurance limit of $750 000. Show how amounts of insurance, policy premiums and losses will be shared in the following scenarios:
–Policy A has a $250 000 amount of insurance, a policy premium of $20 000, and a $100 000 loss
–Policy B has a $500 000 amount of insurance, a policy premium of $40 000, and a $250 000 loss.
