Definitions for "Proportional reinsurance"
Keywords:  cedes, reinsurer, rata, quota, premium
A generic term describing all forms of QUOTA SHARE and SURPLUS REINSURANCE in which the REINSURER shares a pro rata portion of the losses and premiums of the CEDING COMPANY. Also PARTICIPATING REINSURANCE, PRO RATA REINSURANCE.
See Quota Share Reinsurance.
Reinsurance treaties on the basis of which shares in a risk or portfolio are reinsured under the prevailing original conditions. Premiums and losses are shared proportionately on a pro-rata basis. This is in contrast to non-proportional reinsurance.