How much does the organization retain per occurrence

Assignment Help Financial Accounting
Reference no: EM132894444

Question - An organization enters into a captive insurance arrangement with a fronting company for an incurred loss retrospective rating plan with a loss limit of $500,000 per occurrence for its workers compensation loss exposures.

The captive insurer then purchases excess of loss reinsurance of $1,000,000 for any loss in excess of $1,000,000 per occurrence.

The goal is to determine the captive insurer's net loss exposure per occurrence (aside from minimum or maximum premium considerations) by answering these questions:

Required -

What is the captive insurer's net loss exposure per occurrence?

How much does the organization retain per occurrence?

How much will the reinsurer pay for the loss?

How much is the captive insurer's loss exposure and net exposure?

Reference no: EM132894444

Questions Cloud

Define scope of your capstone project : define the scope of your capstone project choice. What are the anticipated activities of your project? What is your hypothesis or theory?
What would be the balance in share premium-treasury account : TIM Co. was organized on January 2, 2019, with 500,000 authorized. What would be the balance in the Share Premium-Treasury account at December 31, 2019?
Is there an essential difference between the two costs : Flights are treated as a direct cost and hotels rooms are indirect. Is there an essential difference between the two costs that justified this treatment
Compare approach of the townsmen to minnie wright : Compare the approach of the townsmen to Minnie Wright to that of the townswomen who accompany the men on their search for evidence of the crime
How much does the organization retain per occurrence : The captive insurer then purchases excess of loss reinsurance of $1,000,000 for any loss in excess of $1,000,000 per occurrence
Especially the free cash flow model : Why do you think so much emphasis is placed on cash-flow-based stock evaluations, especially the "free cash flow model"?
Human resource management in healthcare : Health-care organizations utilize an increasing number of types of health-care personnel, each with their own set of credentialing, licensure,
Critical component of running a business : Making the decision to institute change is a critical component of running a business.
What is its cost of equity if there are no taxes : A firm has a debt-to-equity ratio of 0.50. Its cost of debt is 12%. Its overall cost of capital is 16%. What is its cost of equity if there are no taxes

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd