google bot detected Quota Share Reinsurance | Insurance Glossary | Realestateagent.com

Quota Share Reinsurance


Definition of "Quota share reinsurance"

Kevin Carney
  The K Co. Realty

Automatic reinsurance that requires the insurer to transfer, and the re insurer to accept, a given percentage of every risk within a defined category of business written by the insurer. For example, in the case of a 20% quota share, the insurer transfers 20% of its liability and premiums on every risk to the re insurer, who must pay 20% of any loss sustained, whether total or partial. The percentage is constant throughout and applies to premiums and losses alike.



Related Real Estate Glossary terms

Related Real Estate FAQ