Question

What is the characteristic of a variable quota share treaty?

a.

It combines quota-share and excess-of-loss features

b.

It has a fixed percentage of reinsurance coverage

c.

It provides retrocession of reinsurance accounts

d.

Its reinsured amount varies between a minimum and maximum quota share

Answer: (d).Its reinsured amount varies between a minimum and maximum quota share Explanation:Variable quota share treaty can be defined as a treaty where the amount reinsured is expressed as being between a minimum and maximum quota share.

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Q. What is the characteristic of a variable quota share treaty?

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