A form of excess of loss reinsurance which, subject to a specified limit, indemnifies the ceding company against the amount of loss in excess of a specified retention for each risk involved in each occurrence.
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UK: An excess of loss reinsurance which, subject to a specified limit, indemnifies the reinsured against the amount of loss in excess of a specified retention for each risk involved in each loss occurrence regardless of the number of risks. The amount of risk retained by the cedant be different may for each risk transferred. A risk may be defined as a building and its contents. This form of treaty often substitutes for proportional reinsurance or supplements it, thereby protecting the cedant against the effect of underestimating estimated maximum loss.