 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.