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Question: From the following, which is not a non-proportional form of reinsurance?

Options:

  1.  Excess of loss method
  2.  Pools method of reinsurance
  3.  Treaty method of reinsurance
  4.  Quota Method of reinsurance

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1 Answer

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Best answer

4. Quota Method of reinsurance

Quota Method of reinsurance is not a non-proportional form of reinsurance.


More information:

Quota share reinsurance is a form of reinsurance in which the insurer and reinsurance company share premiums and losses a/c to a fixed percentage.

It allows an insurer to retain some risk and premium while sharing the rest with an insurer. Reinsurer accepts a certain percentage of all or certain parts of the business.

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