Changes
{{Unreferenced|date=December 2006}}
{{About|quota shares||Quota (disambiguation){{!}}Quota}}
A '''quota share''' is a specified number or percentage of the allotment as a whole ([[Import quota|quota]]), that is prescribed to each individual entity.
For example, the [[United States]] imposes an [[import quota]] on cars from [[Japan]]. The Japanese government may see fit to impose a quota share program to determine the number of cars each Japanese car manufacturer may export to the United States. Any extra number 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 among 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 $5,000, company A would receive $2,500 in premium, B would receive $1,500, and C would receive $1,000. Company A would pay 50% of any one claim, Company B would pay 30% of any one claim, and Company C would pay 20% of any one claim.
==See also==
* [[Non-tariff barriers to trade]]
{{DEFAULTSORT:Quota Share}}
[[Category:Import]]
[[Category:Insurance]]
[[Category:Quotas]]
{{About|quota shares||Quota (disambiguation){{!}}Quota}}
A '''quota share''' is a specified number or percentage of the allotment as a whole ([[Import quota|quota]]), that is prescribed to each individual entity.
For example, the [[United States]] imposes an [[import quota]] on cars from [[Japan]]. The Japanese government may see fit to impose a quota share program to determine the number of cars each Japanese car manufacturer may export to the United States. Any extra number 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 among 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 $5,000, company A would receive $2,500 in premium, B would receive $1,500, and C would receive $1,000. Company A would pay 50% of any one claim, Company B would pay 30% of any one claim, and Company C would pay 20% of any one claim.
==See also==
* [[Non-tariff barriers to trade]]
{{DEFAULTSORT:Quota Share}}
[[Category:Import]]
[[Category:Insurance]]
[[Category:Quotas]]
