Question

What is "Quota-Share Reinsurance"?

a.

Reinsurance that transfers all insurance liability to the reinsurer

b.

Reinsurance that covers only a portion of the ceding insurer's losses

c.

Reinsurance in which the reinsurer assumes an agreed percentage of each insurance being reinsured and shares all premiums and losses accordingly with the reinsured

d.

Reinsurance that allows the reinsurer to assume excess liability beyond the limits of the ceding insurer

Posted under IC85 Reinsurance Management

Answer: (c).Reinsurance in which the reinsurer assumes an agreed percentage of each insurance being reinsured and shares all premiums and losses accordingly with the reinsured Explanation:"Quota-Share Reinsurance" can be defined as a form of pro rata reinsurance where the reinsurer assumes an agreed percentage of each insurance being reinsured and shares all premiums and losses accordingly with the reinsured.

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