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.

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Approved for 1 Hour of State Reported CE Credit in AR, AZ, CA, DE, CO, FL, GA, IA, IL, IN, KS, KY, LA MA, MD, MI, MO, MN, NC, NE, NJ, NY, OH, OK, OR, PA, PR, SC, TN, TX, UT, WA and WI