What Does Proportional Reinsurance Mean?

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What does Proportional Reinsurance mean? Read on to discover the definition & meaning of the term Proportional Reinsurance - to help you better understand the language used in insurance policies.

Proportional Reinsurance

Proportional Reinsurance

The premium and losses are calculated on a pro rata basis. The reinsurer has a fixed percentage of premium and the same percentage of losses.

We hope the you have a better understanding of the meaning of Proportional Reinsurance.

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