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Quota Share reinsurance is a type of pro rata reinsurance in which the primary insurer and the reinsurer share the amounts of insurance, policy premiums and losses (including loss adjustment expenses) using a fixed percentage. Quota Share reinsurance can be used for both property and liability insurance but is more frequently used in property insurance.
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What is First dollar quota share reinsurance?
Quota share is the other word for'first dollar' quota share) A reinsurance arrangement in which the re insurer receives a certain percentage of each risk reinsured. First-dollar quota-share reinsurance transfers a percentage of risk on each policy from the ceding company to the reinsurer and shares all premiums and losses accordingly.
Is quota share treaty a non proportional treaty?
Quota Share is proportional treaty.
What are the advantages of quota share reinsurance?
there is no selection against reinsurer since he get a mix of both good and bad business ,hence the reinsurer will attain a balanced port folio with and predictable results .consequently low costsimple to administer
What is reinsurance?
Reinsuring is the act of purchasing a reinsurance agreement. Reinsurance is purchased by an insurance company who wishes to transfer part of the risk of loss from an issued policy or group of policies to another insurance carrier. This is done when the limit of insurance for a particular policy would exceed the capacity of an insurance carrier or a carrier needs reinsurance to increase the policy holder surplus required to maintain a sound financial position. Their are two types of reinsurance, treaty reinsurance and facultative reinsurance. Treaty reinsurance is arranged usually in advance, for a group of policies meeting certain criteria. For example, a treaty reinsurance policy may cover $250,000 of property losses excess of $250,000 for all commercial building properties in a given state. This is called excess of loss treaty reinsurance. This would be used to address capacity issues that occur frequently. Another type of treaty reinsurance is pro-rata reinsurance or share reinsurance. In pro-rata reinsurance, the reinsurer agrees to pay a percentage of all losses on the agreed upon policies. For example, a pro-rata treaty reinsurance policy may pay 50% of all losses of a group of policies. The premium for this type of reinsurance would be 50% of the earned premium for each of the policies covered minus a deduction for policy expense (underwriting and compensation to the agent). This type of treaty reinsurance is used to address a policyholder surplus need of the ceding insurer. Facultative reinsurance is issued for one policy, not a group of policies, and is usually used to address large line capacity, especially in property coverage. Facultative is usually written on an excess of loss basis. For example, an insurance company may have secured treaty reinsurance to write properties of a certain type up to $150 million loss limit, but the insured is requesting $250 million. To write the insurance policy, the insurance company must secure facultative reinsurance in the amount of $100 million excess $150 million. This may be abrivated $100 million xs $150 million. Mark Walters, ARM AAI West Insurance Group mwalters@westagy.com
Is the word quota a verb?
The word quota is a noun meaning: a proportional part or share of a fixed total amount or quantity.
Do quota-share insurance agreements exist anymore or are excess layer agreements the only form of liability insurance?
Yes, the quota-share insurance agreements still exist to this day.
What is faculative reinsurance?
A policy where the original (principal) insurer determines the level of risk it should maintian on any one policy, while the principal insurer will ask to share the remaining risk with a third party insurer for a premium. facultative reinsurance is taken for in dividual risks. if any risk is beyond direct insurers limit and does not fall under any treaty arrangements he made then the direct insurer approaches for the facultative support Suman Karthik
What are the disadvantages of excess of loss reinsurance?
1. It is limited and you have to declare how many free reinstatements you buy. For example when reinsuring property line you can buy coverage of USD 99.000.000 in excess of USD 1.000.000 with one free reinstatement. If three losses of USD 100.000.000 happen during a year only first two are covered if you do not buy additional coverage. Also after two losses that exhaust your excess of loss capacity buying the third reinstatement would be extremely expensive. 2. You have to pay so called MinDep - minimum deposit premium. It is calculated as a certain percentage of estimated premium income multipled by the rate. If your actual premium income is lower than this percentage of declared premium income you pay for empty coverage - the one you do not actually need. 3. Excess of loss only covers losses excessing some amount while proportionate reinsurance (quota share, surplus) covers certain share of every, even the smallest one, indemnity paid from the insurance that falls into the treaty.
Was there a treaty signed with the pilgrims and the Indians to share land?
Yes with the wampanaugs
What is meant by face value of a share?
The value of the share of stock as it is actually printed on the face of the certificate.
What is meant by the lion's share?
biggest part or portion
What is meant by rupees rise and down?
share bazar
