Question

What is Quota Share Reinsurance?

a.

A type of non-proportional reinsurance in which the reinsurer pays a portion of the loss exceeding a certain amount.

b.

A type of proportional reinsurance in which the reinsurer assumes an agreed percentage of each risk and shares all premiums and losses accordingly with the reinsured.

c.

A type of facultative reinsurance in which the reinsurer assesses each risk separately.

d.

None of the above.

Posted under IC85 Reinsurance Management

Answer: (b).A type of proportional reinsurance in which the reinsurer assumes an agreed percentage of each risk and shares all premiums and losses accordingly with the reinsured. Explanation:Quota Share Reinsurance is a type of proportional reinsurance in which the reinsurer assumes an agreed percentage of each risk and shares all premiums and losses accordingly with the reinsured.

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