quota share reinsurance

  • The basic form of participating treaty whereby the reinsurer accepts a stated percentage of each and every risk within a defined category of business on a pro rata basis. The word quota means a definite share. Participation in each risk is fixed and certain.

    Internal Revenue Service 1
    See also treaty

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).