Question

    What type of reinsurance contract allows an insurer to

    cede a fixed percentage of all policies to a reinsurer in return for proportionate claims and premium sharing?
    A Excess of Loss Correct Answer Incorrect Answer
    B Facultative Correct Answer Incorrect Answer
    C Stop-loss Correct Answer Incorrect Answer
    D Quota Share Treaty Correct Answer Incorrect Answer
    E Aggregate Cover Correct Answer Incorrect Answer

    Solution

    Quota Share involves fixed % risk and premium-sharing.

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