Page 123 - Reinsurance Management IC85

Reinsurance Management

6. Liability is based on 6. Liability in excess of

predetermined the Cedant's retention

percentage

Q. Distinguish between Surplus Share and

Quota Share Treaty

Ans:

Surplus share treaty Quota share treaty

1. Often property only 1. Both property and

casualty

2. Sharing of percentage 2. Sharing of percentage

of loss is variable of loss is fixed

3. Individual cessions 3. No individual

cessions

4. Reinsurer's premium 4. Reinsurer's premium

is the percentage of is the percentage of

the original premium the original premium

less a negotiated less a negotiated

ceding commission premium less a

negotiated ceding

commission

5. Premiums and losses 5. Premiums and

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