What does Pro Rata Reinsurance mean? Read on to discover the definition & meaning of the term Pro Rata Reinsurance - to help you better understand the language used in insurance policies.
Pro Rata Reinsurance
The primary insurer cedes a predetermined percentage of the risk to the reinsurer. The reinsurer shares in the losses proportional to the premiums and limits reinsured.
We hope the you have a better understanding of the meaning of Pro Rata Reinsurance.