UK: any form of reinsurance whereby the reinsurer participates proportionately in the premiums receivable and claims payable by the cedant.
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REINSURANCE,REFERENCE: See: Quota Share, Pro Rata Reinsurance, Surplus Reinsurance.
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UK: The cedant and the reinsurer share the risk in agreed proportions, either fixed (quota share treaty) or variable (surplus treaty) based on the ceding office’s retention and the sum insured. The reinsurer shares proportionally the premiums earned and the claims plus certain expenses incurred by the ceding office. Proportional reinsurances may be arranged facultatively or by treaty and they may include: quota share reinsurances; surplus treaties; facultative/obligatory treaties; reinsurance pools.