Question

How are premiums and claims shared in Fixed Quota Share Reinsurance?

a.

They are subject to different percentages for premiums and claims.

b.

They are subject to the same percentage for both premiums and claims.

c.

Premiums are subject to a fixed percentage, and claims are subject to a variable percentage.

d.

None of the above.

Answer: (b).They are subject to the same percentage for both premiums and claims. Explanation:In Fixed Quota Share Reinsurance, premiums and claims are subject to the same percentage.

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Q. How are premiums and claims shared in Fixed Quota Share Reinsurance?

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