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In a proportional reinsurance treaty, how are premiums and losses shared?

The reinsurer pays all losses above a fixed threshold Premiums and losses are shared in an agreed proportion between cedant and reinsurer The cedant retains all premiums and the reinsurer covers all losses Losses are shared equally regardless of premium allocation

Correct Answer:

Premiums and losses are shared in an agreed proportion between cedant and reinsurer

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