financial quota share
Financial quota share is a form of reinsurance that enables a cedent to increase its statutory surplus by the amount of the ceding commission in the reinsured unearned premium reserve.
financial quota share
Financial quota share is a form of reinsurance that enables a cedent to increase its statutory surplus by the amount of the ceding commission in the reinsured unearned premium reserve.
Additional Information
Surplus relief arises because statutory accounting requires insurers and reinsurers to immediately charge all acquisition costs to the accounting period in which the business is written, even when the premium is unearned at the end of the period. It is referred to as prepaid acquisition costs in the unearned premium reserve or the equity in the unearned premium reserve.
