Question

What is "Quota-Share Reinsurance"?What is "Reciprocity" in the context of reinsurance?

Reinsurance that transfers all insurance liability to the reinsurerThe process of reinstating a reinsurance limit after payment of a loss

Reinsurance that covers only a portion of the ceding insurer's lossesThe mutual exchange of reinsurance between parties to stabilize overall results

Reinsurance in which the reinsurer assumes an agreed percentage of each insurance being reinsured and shares all premiums and losses accordingly with the reinsuredThe sharing of premiums and losses between the reinsurer and reinsured in quota-share reinsurance

Reinsurance that allows the reinsurer to assume excess liability beyond the limits of the ceding insurerThe restoration of an excess property treaty to its full limit after a loss payment

Posted under IC85 Reinsurance Management

Answer: Reinsurance in which the reinsurer assumes an agreed percentage of each insurance being reinsured and shares all premiums and losses accordingly with the reinsuredThe mutual exchange of reinsurance between parties to stabilize overall results 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."Reciprocity" can be defined as the mutual exchanging of reinsurance, often in equal amounts, from one party to another. The purpose of reciprocity is to stabilize overall results in the reinsurance market.

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Q. What is "Quota-Share Reinsurance"?What is "Reciprocity" in the context of reinsurance?

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