A
quota share is a specified number or percentage of the allotment as a whole (
quotaQuota may refer to:A level business* Quota samplingAffirmative action* Racial quota* Reservation in India* Quotas in PakistanComputing* Disk quota* Bandwidth cap, the quota for upload or download of dataElectoral systems...
), that is prescribed to each individual entity (see
Non-tariff barriers to tradeNon-tariff barriers to trade are trade barriers that restrict imports but are not in the usual form of a tariff.In some forms, they are criticized as a means to evade free trade rules such as those of the World Trade Organization , the European Union , or North American Free Trade Agreement that...
).
For example, the US imposes an
import quotaAn import quota is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time....
on cars from
Japanis an island country in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, People's Republic of China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
. The Japanese government may see fit to impose a quota share program to determine the amount of cars each Japanese car manufacturer may export to the US. Any extra amount that a manufacturer wishes to export must be negotiated with another manufacturer that did not or cannot maximize its share of the quota.
Also there are quota share insurance programs. Where the benefit and the premiums are divided proportionally amongst the insured.
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A
quota share is a specified number or percentage of the allotment as a whole (
quotaQuota may refer to:A level business* Quota samplingAffirmative action* Racial quota* Reservation in India* Quotas in PakistanComputing* Disk quota* Bandwidth cap, the quota for upload or download of dataElectoral systems...
), that is prescribed to each individual entity (see
Non-tariff barriers to tradeNon-tariff barriers to trade are trade barriers that restrict imports but are not in the usual form of a tariff.In some forms, they are criticized as a means to evade free trade rules such as those of the World Trade Organization , the European Union , or North American Free Trade Agreement that...
).
For example, the US imposes an
import quotaAn import quota is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time....
on cars from
Japanis an island country in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, People's Republic of China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
. The Japanese government may see fit to impose a quota share program to determine the amount of cars each Japanese car manufacturer may export to the US. Any extra amount that a manufacturer wishes to export must be negotiated with another manufacturer that did not or cannot maximize its share of the quota.
Also there are quota share insurance programs. Where the benefit and the premiums are divided proportionally amongst the insured. For example, three companies take out a $1,000,000 fire insurance policy on a quota share basis with company A assuming 50% ($500,000), company B 30% ($300,000), and company C 20% ($200,000). If the annual premium was $5000, company A would receive $2,500 in premium, B would receive $1,500, and C would receive $1,000.