A kind of property insurance contract that shares the same risks with another policy, according to a predetermined percentage.
Tag: RAW
Quota share re-insurance (Reinsurance)
A kind of pro-rata reinsurance in which the ceding insurer is indemnified for each risk listed in the contract. These risks are given a fixed percentage of loss, and paid for by the same fraction of the premium.
Quota Share Reinsurance
A form of pro rata reinsurance (or proportional reinsurance) indemnifying the ceding company for an established percentage of loss on each risk covered in the contract in consideration of the same percentage of the premium paid to the ceding company. This may also be known as “first dollar ground up” reinsurance although it can be used for “Excess” original business such as original Umbrella or Excess policies.
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A type of pro rata or proportional reinsurance agreement under which the insurer and reinsurer agree to share a predetermined portion of all insurance, premium, and losses. The primary insurer’s retention in a quota share agreement is expressed as a percentage of the amount insured.
Quota share reinsurance (QSR)
Basic form of proportional reinsurance. Allocates risk, losses and loss adjustment expenses between the cedant and the reinsurer on a fixed percentage basis defined in terms of the policy limit and subject to an allowance for the cedant’s expenses. QSRs boost the cedant’s capacity and reduce the volatility of earnings.
Quota share reinsurance plan
Automatic reinsurance plan wherein the assuming company reinsures a given percentage of certain types of risk that are insured by the ceding company.
Quota Share Treaty
The Ceding Company binds herself to retain for own account a fixed proportion of all its business in a class, up to a limit, and cede a fixed proportion of all business up to an agreed amount to the Reinsurer, and give the corresponding proportion of the premium income.
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A reinsurance treaty which provides that the reassured shall cede to the reinsurer a specified percentage of all the premiums that it receives in respect of a given section or all of its underwriting account for a given period in return for which the reinsurer is obliged to pay the same percentage of any claims and specified expenses arising on the reinsured account.
Quotation
A statement of the premium that an underwriter requires to underwrite an insurance/ reinsurance risk based on the information supplied by the person seeking cover, either directly or via their broker. A quotation may be conditional, eg it may be subject to the provision of further information, or not. If a quotation is accepted before it is withdrawn, then subject to the satisfaction of any conditions that may attach to the quotation, an insurance/reinsurance contract will be made. Compare indication.
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A statement of the premium that an underwriter requires to underwrite an insurance/reinsurance risk based on the information supplied by the person seeking cover, either directly or via their broker. A quotation may be conditional, e.g., it may be subject to the provision of further information, or not. If a quotation is accepted before it is withdrawn, then subject to the satisfaction of any conditions that may attach to the quotation, an insurance/reinsurance contract will be made.
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MEDICAL,USA,REFERENCE: See: proposal .
Quotation slip
A slip upon which a Lloyd’s underwriter presents terms for consideration by the oposer without either party being committed to a transaction.
Quote
An estimate of the cost of insurance based on information supplied to the insurance company by the applicant.
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An estimate of the cost of insurance, based on information supplied to the insurance company by the applicant.
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MEDICAL,USA,REFERENCE: See: proposal .