In a complex property policy what is the difference between

In a complex property policy, what is the difference between a “Layered Participant” and a “Quota Share Participant”

Solution

Quota share is a form of pro rata insurance whereby the participant is indemnified for a fixed percent of loss on each risk covered by the treaty contract. All liability and premiums are shared from the first dollar. “Quota” or “definite” share relates to the fixed percentage as stated in the treaty.

A layered participant is the one who is only required to pay out a sum up to the indemnity limit less any policy excess.