Quota Share Participation
What this clause says
The liability of the Company shall be limited to its stated percentage participation of the Limit of Liability for this Layer, severally and not jointly with any other participating insurer.
What this actually means
A quota share layer is one excess layer whose limit is split among several carriers by percentage. Each pays its own share of a loss in that layer, and because the participation is several rather than joint, no participant covers another shortfall.
What it means for an operator
Senior care severity has outrun the limit any single market will deploy, so large towers are now assembled from many small participations. Three consequences follow. A participant that becomes insolvent or disputes coverage leaves a hole in the middle of the layer rather than at the top of the tower. A claim reaching a quota shared layer has several claims professionals and no single decision maker, which slows settlement, so ask which participant leads and what percentage it holds. And form consistency has to be confirmed participation by participation, because a layer where three quarters follows the primary treatment of abuse and one quarter does not produces a partial recovery on exactly the claim that reached it.
Program notes
Ask your broker for the tower on one page: every participant, its share, its layer, its attachment and its form. If that page does not exist, it is worth asking why, since the broker is the only party who can see the whole of it.
Why the Policy Checker does not score this
This term is worth understanding and cannot be checked from a declarations page. There is no single field that would answer it, and scoring it from an assumption would produce a confident wrong finding, which is the one thing a tool like this must never do. It is defined here and left out of the check.
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