A reinsurance cover of N100,000 in excess of N20,000 was entered by insurer K with reinsurer M. In the event of a loss amounting to N120,000, M would pay?

A reinsurance cover of N100,000 in excess of N20,000 was entered by insurer K with reinsurer M. In the event of a loss amounting to N120,000, M would pay?

A N20,000
B N120,000
C N80,000
D N100,000

waec 2018 insurance

The correct answer is C. N80,000

No explanation given

Previous question Next question