Hi I am having a hard time understanding how to solveing these kind of problems, I am hoping that if I can get help with one the rest will come with more ease.
The problem is:
Three insurance companies agree to jointly insure a cargo ship for $38.6 Million. If insures A,B, and C allocate premiums received and accept the risk in the ratio 3:8:5, respectively:
A) How will the annual premium of $900,000 be distributed?
B) What is the maximum claim exposure of each insurer?
Please Help. Thank you.