Quota share treaty: Insurance Glossary Dictionary II - Quota share treaty

Definition of Quota share treaty:

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.

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The meaning of Quota share treaty is an excerpt from Lloyd's Insurance Glossary

Visit Lloyds website here: http://www.lloyds.com

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