Are electronic signatures legally binding?

Yes. Electronic signatures are legally effective under the federal ESIGN Act (15 U.S.C. §7001) and the Uniform Electronic Transactions Act (UETA) in most states, provided the signature meets intent, consent, attribution, and retention requirements.

When is notarization required?

Most states do not require notarization for reinsurance treaties, but individual state DOI rules or internal corporate policies may request notarized signatures; verify with state insurance department guidance before execution.

Who must sign the contract?

An authorized officer or delegated signatory for each party must sign. Document the signer’s title and authority in the contract or by corporate resolution to ensure enforcement.

Can the contract be changed after signing?

Amendments require mutual written agreement signed by authorized parties; include an amendment procedure and specify when changes take effect to avoid accounting and regulatory inconsistencies.

How should executed copies be stored?

Store signed originals and certified electronic copies in a secure system with an immutable audit trail. Retain copies per retention policies and applicable regulations like IRC §6501(a) or HIPAA where relevant.

How do parties cancel or revoke the agreement?

Follow termination clauses in the contract. Immediate revocation is only effective if permitted by contract terms; otherwise, parties remain bound until the agreed termination date or mutual written consent.

Electronic Signature
Templates
Insurance
Insurance Quota Share Contract

Insurance Quota Share Contract

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

INSURANCE QUOTA SHARE CONTRACT

Parties

This Quota Share Contract is entered into by and between:

Ceding Company Name: Ceding Company Address: Reinsurer Name: Reinsurer Address:

Recitals and Definitions

WHEREAS, the Ceding Company underwrites policies as described in the Portfolio below and desires to cede, and the Reinsurer desires to assume, a quota share portion of the premiums, losses and liabilities subject to the terms and conditions set forth in this Contract; and WHEREAS, the parties agree that defined terms used herein shall have the meanings assigned in this Contract unless otherwise stated.

Portfolio / Policies Subject to Quota Share

Policy classes to be ceded under this Contract (select all applicable):

Coverage Types:

Property Casualty Motor Marine Life Other:

Description of Portfolio / Class Definitions:

Contract Period

This Quota Share Contract shall be effective from through unless earlier terminated as provided herein.

Quota Share Terms

The Reinsurer shall assume % of the net premiums written, net losses and net liabilities arising under the Policies described in this Contract, on a pro rata basis, subject to the terms, limits and exclusions set forth herein.

Ceding Commission (%): Premium Adjustment and Profit Commission Mechanism (if any):

Premium Accounting and Settlement

Premiums written by the Ceding Company shall be reported and remitted to the Reinsurer on a basis. Statements shall be rendered no less frequently than quarterly and settlement shall be made within days of statement delivery.

Accounting Contact for Ceding Company (name & title): Accounting Contact for Reinsurer (name & title):

Claims Handling and Reporting

The Ceding Company shall retain first notice and daily claims handling responsibility. The Ceding Company shall report claims to the Reinsurer within of knowledge of a claim. The Reinsurer shall have the right to reasonable participation in claim investigations and to receive copies of relevant claim documentation.

Claims Reporting Address / Email for Reinsurer:

Limits, Retentions and Security

The parties agree that the Reinsurer's liability under this Contract shall be subject to the following limits and retention provisions.

Per-risk / Per-occurrence Limit (if applicable): Ceding Retention / Priority: Security / Collateral Required (describe):

Exclusions and Limitations

The Reinsurer shall not be liable for the following categories unless explicitly agreed in writing:

Representations, Warranties and Covenants

Each party represents and warrants that it is duly organized and validly existing, has full power and authority to enter into this Contract, and that the execution, delivery and performance of this Contract has been duly authorized by all necessary corporate or other action.

Termination

This Contract may be terminated by either party upon written notice to the other party in accordance with the Notices provision, provided that termination shall not affect the rights and obligations with respect to policies incepting prior to the effective date of termination except as expressly provided herein.

Termination Notice Period (days):

Confidentiality and Data

All non-public information exchanged under this Contract shall be treated as confidential and may be used only for purposes of administering this Contract. Confidential information shall not be disclosed except as required by law, regulation or a competent judicial or administrative process, subject to prior notice to the disclosing party where permitted.

Beneficiary Designation (if applicable)

For life policies included in the ceded portfolio, indicate primary beneficiary details for reinsurance recoveries (if applicable).

Beneficiary Name: Beneficiary Relationship: Beneficiary Percentage (%):

Notices

Notices required under this Contract shall be sent to the addresses specified below by certified mail, courier, or other manner providing evidence of delivery.

Notice Address for Ceding Company: Notice Address for Reinsurer:

Governing Law and Dispute Resolution

This Contract shall be governed by the laws of the state of without regard to choice of law principles. Disputes arising out of or relating to this Contract shall be resolved by arbitration or court action as selected below.

Arbitration Court Litigation

Miscellaneous

Entire Agreement: This Contract, together with referenced schedules and endorsements, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings.

Certification and Execution

The undersigned authorized representatives of the parties certify that they are authorized to execute this Quota Share Contract and that the information provided herein is true and accurate to the best of their knowledge. The execution of this Contract binds each party to the obligations contained herein.

Authorized Representative (Ceding Company):

Authorized Representative (Reinsurer):

By checking the box below, the signer confirms that they have the authority to bind their organization to the terms of this Contract.

I certify that I am authorized to execute this Contract on behalf of the named party.

Ceding Company — Printed Name:

Reinsurer — Printed Name:

Ceding Company — By:

Reinsurer — By:

Date:

What an Insurance Quota Share Contract Is and when it applies

An Insurance Quota Share Contract is a reinsurance arrangement in which a primary insurer (the ceding company) and a reinsurer share premiums and losses for a defined portion of an insurer’s portfolio. The agreement specifies the percentage of each risk ceded, allocation of premiums and commissions, loss settlements, reporting obligations, and contract term. Quota share treaties are used to manage capacity, stabilize results, transfer catastrophic exposure, or support new product lines or territories. Parties should document accounting, regulatory reporting, and dispute-resolution processes within the contract to avoid later ambiguity.

Why a clear quota share contract matters

A well-drafted Insurance Quota Share Contract clarifies financial sharing, loss allocation, and regulatory duties, reducing dispute risk and supporting solvency reporting among cedent and reinsurer parties.

Typical users and their responsibilities

These agreements are prepared and reviewed by insurance company underwriters, reinsurance treaty managers, compliance officers, and counsel before execution.

Primary insurer underwriter: drafts risk scope, ceded percentage, and premium allocation for underwriting and accounting teams.
Reinsurer treaty manager: reviews treaty wording, solvency impact, and retrocession options; coordinates credit and collateral terms.
Legal and compliance counsel: verifies regulatory filings, policy form attachments, dispute mechanisms, and state insurance code alignment.

Each party’s operations, accounting, and claims teams will implement contract terms after signature and should retain execution records for audits and regulatory review.

Who signs and why

Ceding Company CFO

Chief financial officers or authorized officers sign on behalf of the insurer to bind the ceded premium and recognize reserves; they ensure accounting treatment matches GAAP and statutory reporting.

Reinsurer Authorized Officer

A named executive or delegated signatory at the reinsurer binds the acceptance of ceded business, collateral arrangements, and claims settlement authority in accordance with company approval limits.

Core clauses to include in a professional quota share treaty

A complete Insurance Quota Share Contract addresses allocation mechanics, administrative processes, and contingencies so both parties understand financial flows and operational responsibilities.

Cession Percentage

Defines the precise percentage of each policy or line the reinsurer will assume and how varying policy limits or endorsements affect that percentage.

Premium and Commission

Specifies premium calculation, payment timing, commission rates to the ceding insurer, and treatment of returned premium or cancellations.

Loss Sharing and Settlement

Describes how reported losses are allocated, adjusted loss reserves, loss settlement procedures, and timelines for claims reporting and reconciliation.

Accounting and Reporting

Requires regular reporting cycles, reconciliation procedures, audit rights, and accounting bases for ceded premiums and claims reserves.

Collateral and Security

Sets collateral requirements, acceptable security forms, triggers for additional collateral, and procedures for collateral return.

Regulatory Compliance

Allocates responsibility for state insurance filings, disclosures to departments of insurance, solvency reporting and who bears penalties for noncompliance.

Essential data fields to capture in the contract

Parties: Full legal names

Effective Date: MM/DD/YYYY

Cession Rate: Percentage ceded

Premium Basis: Gross written premium

Claims Protocol: Reporting timeline

Collateral Terms: Type and amount

Step-by-step: completing a quota share contract

Use this sequential checklist to assemble, review, and sign a legally enforceable Insurance Quota Share Contract.

01

Assemble terms: Compile coverage lists, cession percentage, and premium formulas before drafting.
02

Legal review: Have counsel verify regulatory compliance and dispute clauses.
03

Operational review: Confirm reporting intervals, IT feeds, and claims workflows.
04

Execution: Obtain authorized signatures and preserve the signed record.

Configuring an online completion workflow

Map each approval and signing step so electronic routing mirrors the internal review sequence and preserves auditability.

Field	Configuration
Upload master	PDF or DOCX with clause placeholders
Signer order	Sequential or parallel routing
Authentication	Email + SMS code or stronger options
Retention	Set automatic archival after execution

Where to send or file the executed contract

After signature, route the agreement to internal stakeholders and to regulators where required; retain multiple secure copies for audit.

Ceding insurer: Primary retention for accounting and solvency reporting
Reinsurer: Counterparty retention and claims integration
Regulator: State DOI filings when statutorily required
Internal audit: Archive for audit and compliance verification

Distribution and eSubmission considerations

Choose delivery methods that maintain chain-of-custody, support an audit trail, and meet regulatory evidence standards.

File formats: PDF, DOCX supported
Integrations: CRM and document storage systems
Authentication: Email, SMS, or advanced options

Timelines and processing expectations

Timelines vary by organization and regulation; plan for internal review, regulator filing windows, and premium reconciliation schedules.

Internal review window:

7–21 days depending on complexity

Signature deadline:

Set a clear date to lock accounting period

Regulatory filing:

Varies by state; submit as required by DOI

Premium reconciliation:

Monthly or quarterly per agreement

Claims reporting:

Immediate for large claims; as agreed otherwise

Common preparation errors to avoid

Ambiguous cession percentages that fail to address endorsements or policy changes, leading to disputed premium allocations and reserve mismatches.
Missing or inconsistent premium basis definitions (net vs. gross written premium), which can cause settlement discrepancies at reconciliation.
Failure to specify collateral triggers and calculation method, exposing one party to unexpected security calls or solvency concerns.
Insufficient claims-reporting procedures or deadlines, resulting in delayed recoveries and strained insurer–reinsurer relations.

Practical risks and potential regulatory consequences

Regulatory fines: State DOI penalties

Reserve disputes: Incorrect financial reporting

Collateral shortfall: Increased credit risk

Contract voiding: Enforceability challenges

Operational delay: Claims payment lag

Reputational harm: Counterparty confidence loss

How quota share differs from other reinsurance types

Compare core functional differences so you choose the reinsurance form that matches risk-transfer and accounting objectives.

Criteria	Quota Share	Excess of Loss
Risk Sharing	pro rata	non-pro rata
Premium Allocation	proportional	loss-triggered
Claims Treatment	pro rata settlement	subject to attachment limit
Typical Use	portfolio capacity	catastrophe protection

eSignature vendor pricing and capability snapshot for executed contracts

Compare starting pricing and core capabilities for market-leading eSignature providers; signNow is listed first per vendor-comparison conventions.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	Yes, 7-day	Yes	Yes	Yes	Yes
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No envelope cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Frequently asked questions about Insurance Quota Share Contracts

Answers to common execution and legal questions when preparing, signing, and storing quota share treaties.

Need help? Contact support

Are electronic signatures legally binding?
Yes. Electronic signatures are legally effective under the federal ESIGN Act (15 U.S.C. §7001) and the Uniform Electronic Transactions Act (UETA) in most states, provided the signature meets intent, consent, attribution, and retention requirements.
When is notarization required?
Most states do not require notarization for reinsurance treaties, but individual state DOI rules or internal corporate policies may request notarized signatures; verify with state insurance department guidance before execution.
Who must sign the contract?
An authorized officer or delegated signatory for each party must sign. Document the signer’s title and authority in the contract or by corporate resolution to ensure enforcement.
Can the contract be changed after signing?
Amendments require mutual written agreement signed by authorized parties; include an amendment procedure and specify when changes take effect to avoid accounting and regulatory inconsistencies.
How should executed copies be stored?
Store signed originals and certified electronic copies in a secure system with an immutable audit trail. Retain copies per retention policies and applicable regulations like IRC §6501(a) or HIPAA where relevant.
How do parties cancel or revoke the agreement?
Follow termination clauses in the contract. Immediate revocation is only effective if permitted by contract terms; otherwise, parties remain bound until the agreed termination date or mutual written consent.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now