GLOSSARY
This Insurance Glossary of Terms is produced and maintained by the National Alliance Research Academy. 
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Pro Rata Reinsurance (Proportional)

An agreement to share insurance. The reinsurer gets an agreed percentage of the original premium, less a ceding commission, and pays the same percentage of all losses covered by the reinsurance contract. Typically, there is no occurrence limit under a pro rata reinsurance agreement, so the reinsurer has a catastrophe exposure.