An adaptation of an excess of loss reinsurance treaty. The loss ratio of the cedant is ‘stopped’ at an agreed percentage of the premium income with the balance wholly or partly falling to the reinsurer, e.g. 90 per cent of losses in excess of 80 per cent up to 120 per cent or a given monetary amount if occurring sooner. Aggregate excess of loss reinsurance works in the same way but its entry/exit points are monetary amounts not ratios.