(Also known as "Contributing Excess") A variation of the Pro Rata reinsurance basis, whereby insurer and reinsurer(s) share all premiums and losses according to a fixed percentage(s) expressed in the Declarations.
The basic form of pro-rata reinsurance whereby the reinsurer accepts a stated percentage of each and every risk within a defined category of business. The participation in each risk is fixed and certain.
Reinsurance on a percentage basis of a fixed share of all risks
A form of insurance wherein all insurance parties (primary and reinsurers) share a portion of all losses on an individual basis. Quota share is credited with being the original form of insurance. The story goes that a group of ship owners and financiers were sitting around in a little coffee shop in London called Lloydâ€(tm)s
proportional reinsurance where the reinsurer accepts a fixed percentage of every risk written by the ceding company.
A quota share is a specified number or percentage of the allotment as a whole (quota), that is prescribed to each individual entity.