We would like to clarify the treatment of proportional reinsurance in Motor liability Man-made catastrophic risk submodule. When calculating inputs N(a)/N(b) according to Article 129 of DELEGATED REGULATION (EU) 2015/35 "The number of motor vehicles covered by the proportional reinsurance obligations of the insurance or reinsurance undertaking shall be weighted by the relative share of the undertaking's obligations in respect of the sum insured of the motor vehicles." It is not clear to us how this rule should be applied in cases, where proportional reinsurance covers all MTPL business but only to a specified limit per loss. For example: there is QS 50% up to loss of 1mil EUR, and unlimited XL cover above 1mil EUR. N(a) = 80000, N(b) = 0. In that case instantaneous loss L(motor) gross of reinsurance is approximately 14,1mil EUR (calculated by the prescribed formula). To calculate L(motor) net of reinsurance, we see two options: Option 1: Adjust N(a) by 50% proportional reinsurance from 80000 to 40000, in which case L(motor)=10mil, and then apply XL reinsurance, so the final loss is 1mil EUR. However this is not the real impact of 14,1mil nor 10mil loss on insurance company, because QS reinsurance will cover half of retention. But to lower the net loss to half we consider this as double-counting of effect of QS. Option 2: do not adjust N(a) for proportional reinsurance and apply both QS and XL reinsurance on loss of 14,1mil, which would result in 0,5mil net loss. This is the real impact of such loss on own funds, however, it might not be in line with regulation. Could you please clarify expected treatment of limited proportional reinsurance?