A form of excess of loss reinsurance loss where both the deductible and reinsurer’s limit of liability are expressed as annual aggregate amounts rather than on a per risk or per occurrence basis. The cover, unlike a stop loss treaty is expressed in cash sums not loss ratios. The arrangement is suitable for a reinsured whose concern is protection against cumulative losses on an account, e.g. medical insurances and not against a major ‘per occurrence’ exposure.
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a form of excess of loss reinsurance which indemnifies the ceding company against the amount by which the ceding company’s losses incurred during a specified period exceeds either a predetermined sum or a percentage of the premium income for the class of business concerned; also known as stop loss or excess of loss ratio reinsurance.
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A form of excess of loss reinsurance in which the excess and the limit of liability are expressed as annual aggregate amounts.
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Refer: “Reinsurance, Aggregate Excess of Loss”
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A form of Excess of Loss Reinsurance that indemnifies the ceding company against the amount by which its losses incurred during a specific period, usually 12 months, exceed either (01) a predetermined amount, or (02) a percentage of the company’s premium (loss ratio) for that period. This is commonly referred to as Stop Loss Reinsurance or Excess of Loss Ratio Reinsurance.