A quota share treaty shares an agreed proportion of defined premiums and losses between insurer and reinsurer.
The distinction that matters
The percentage does not eliminate exclusions, limits, commissions or counterparty risk.
What to check
- Check the ceded share and portfolio.
- Review commission and loss terms.
- Read limits and exclusions.
Example to discuss
An insurer ceding a share of eligible risks still checks whether a particular class falls within the treaty.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Jurisdiction and scope
This is an insurer-to-reinsurer concept. A retail customer should check the original policy and insurer rather than infer a direct claim entitlement from a reinsurance structure. Reporting definitions and contract terms may differ.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.