A reinsurance agreement which combines the excess of loss and the Quota Share forms of coverage within one contract, with the reinsurance premium established as a fixed percentage of the Ceding Company‘s Subject Premium.
After deducting the excess recovery on any one loss for one risk, the reinsurer indemnifies the Ceding Company based on a fixed Quota Share percentage.
If a loss does not exceed the excess of loss retention level, only the Quota Share coverage applies.