Definitions for "Quota Share Reinsurance"
Keywords:  rata, reinsurer, ceded, pro, treaty
A form of PRO RATA REINSURANCE indemnifying the CEDING COMPANY for a fixed percent of loss on each risk covered in the contract in consideration of the same percentage of the premium paid to the ceding company.
A proportional or pro rata reinsurance treaty where the same proportion is ceded on all cessions. The reinsurer assumes a set percentage of risk for the same percentage of the premium.
This is a form of automatic reinsurance which requires the Insurer to transfer and the Reinsurer to accept a previously agreed percentage of every risk within a defined category of business written by the Insurer.