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Assume an insurance company (insurer C: ceding company) has written insurance coverage to a building,...

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Assume an insurance company (insurer C: ceding company) has written insurance coverage to a building, which worth 30 million dollars. To cover that business, insurer C has the following reinsurance arrangements: First layer of reinsurance, $7 million in excess of $5 million will be covered by reinsurer A. Another layer of $10 million will be covered by reinsurer B. Everything that is residual will be covered by insurer C (the ceding company). A. If there is a loss of $3 million, how much is each company paying? (Please note that even though some company may have $0 payout, you still need to point out that they are paying $0) B. If there is a loss of $20 million, how much is each company paying? C. What is the maximum amount each company could possibly pay

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