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      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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