Quota share


Quota share

A quota share is a specified number or percentage of the allotment as a whole (quota), that is prescribed to each individual entity (see Non-tariff barriers to trade).

For example, the US imposes an import quota on cars from Japan. The Japanese government may see fit to impose a quota share program to determine the amount of cars each Japanese car manufacturer may export to the US. Any extra amount that a manufacturer wishes to export must be negotiated with another manufacturer that did not or cannot maximize its share of the quota.

There are also quota share insurance programs, where the benefit and the premiums are divided proportionally amongst the insureds. For example, three companies take out a $1,000,000 fire insurance policy on a quota share basis with company A assuming 50% ($500,000), company B 30% ($300,000), and company C 20% ($200,000). If the annual premium was $6000, company A would pay $3,000, B would pay $1,800, and C would pay $1,200.

In reinsurance, quota share is an arrangement between a cedent and reinsurer where premiums and losses are shared proportionately.


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  • quota share — a permit with a face value used as a basis for the annual calculation of a person s individual quota …   Dictionary of ichthyology

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  • Quota — Quo ta (kw[=o] t[.a]), n. [LL., fr. L. quota (sc. pars), fr. quotus which or what in number, of what number, how many, fr. quot how many, akin to quis, qui, who: cf. It. quota a share. See {Who}.] 1. A proportional part or share; the share or… …   The Collaborative International Dictionary of English

  • quota — quo·ta / kwō tə/ n [Medieval Latin, from Latin quota pars how great a part] 1: a proportional part or share assigned to each in a body 2: a specific amount that serves as a minimum or maximum a law against traffic ticket quota s Merriam Webster’s …   Law dictionary

  • quota — [kwōt′ə] n. [ML, short for L quota pars, how large a part: fem. of quotus: see QUOTE] 1. a share or proportion which each of a number is called upon to contribute, or which is assigned to each; proportional share ☆ 2. the number or proportion… …   English World dictionary

  • share — n 1: a portion belonging to, due to, or due from an individual a joint tortfeasor is liable for her share of the damages; specif: the part allotted or belonging to one of a number owning together any property or interest the share of a joint… …   Law dictionary

  • share — |chere| s. m. 1.  [Radiodifusão, Televisão] Índice ou quota de audiências. 2.  [Economia] Quota de mercado. • Plural: shares.   ‣ Etimologia: palavra inglesa, de share, parte, porção …   Dicionário da Língua Portuguesa

  • share — [n] portion, allotment allowance, apportionment, bite, chunk, claim, commission, contribution, cut, cut in, cut up, divide, dividend, division, divvy*, dose, drag*, due, end, fiftyfifty*, fraction, fragment, halver, helping, heritage, interest,… …   New thesaurus

  • share — share1 [sher] n. [ME < OE scearu, akin to scieran, to SHEAR] 1. a part or portion that belongs or is allotted to an individual, or the part contributed by one 2. a just, due, reasonable, or full part or quota [to do one s share of work] 3. a)… …   English World dictionary

  • quota — ► NOUN 1) a limited quantity of a product which may be produced, exported, or imported. 2) a share that one is entitled to receive or bound to contribute. 3) a fixed number of a group allowed to do something, e.g. immigrants entering a country.… …   English terms dictionary


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