Question about Party - Drop - Allocation

Hi, found this on poe.wiki :
Party - Effect on loot :
Each player after the first adds a bonus +10% increased item quantity and 40% increased item rarity to the party. For skill gems and currency items, party members add 50% .

My question is: Do i have to be at close range of the other party members ? Like it is for experience (leech), to get that bonus ? Or once there are other party members on the same area, i get that increase automatically, like the monster extra %HP bonus for example.

The 2nd question: Anyone knows how RNGAllocaJizas looks like inside ? I was doing a map with my buddy, he gets 1 exalt drop, then we open a breach 2 minutes later, i die, he gets another exalt orb dropped, also, alocated to him :D What is going on ¿? Shouldn't be a more complex and balanced allocation system ?

No shouldn't.

Any system that keeps you from getting unlucky will also keep you from getting lucky. This game thrives on the highs you get when RNG goes your way. You can't have it remove "bad luck" without having it remove "good luck".