01.Core Concepts

Under a quota-share treaty, the ceding insurer and the reinsurer agree to share premiums and losses based on some proportion Example: assume that Apex Fire Insurance and Geneva Re enter into a quota-share arrangement by which losses and premiums are shared 50-50 If a $100,000 loss occurs, Apex Fire pays $100,000 to the insured but is reimbursed by Geneva Re for $50,000