A form of reinsurance also known as “aggregate excess of loss reinsurance” under which a reinsurer, subject to a specified limit, is liable for all losses, regardless of size, that occur after a specified loss ratio or total dollar amount of losses has been reached. See Aggregate Excess of Loss Reinsurance, Stop Loss Reinsurance.
Insurance Encyclopedia
Excess of loss ratio reinsurance/stop loss reinsurance
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.
Excess of Loss Reinsurance
Generic term describing Reinsurance which subject to a specified limit, indemnifies the Ceding Insurer for amounts of loss in excess of specified retentions. (ii) Reinsurance which indemnifies the Ceding Company for the portion of any loss resulting from a single occurrence, however defined, that exceeds a predetermined amount, which is known as a first loss retention or deductible.
Excess of Loss Reinsurance (also known as Non-Proportional Reinsurance)
A form of reinsurance, which, subject to a specified limit, indemnifies the ceding company for the amount of loss in excess of a specified retention. It includes various types of reinsurance, such as catastrophe reinsurance, per risk reinsurance, per occurrence reinsurance and aggregate excess of loss reinsurance.
Excess of loss reinsurance (Reinsurance)
Reinsurance covering the insurance company against losses larger than a certain amount. This term can also refer to reinsurance that covers the ceding company from the part of the loss that comes from a single occurrence that exceeds the first loss, a previously stated amount.
Excess or Surplus Line Market
The range of insurance available through non-admitted insurers, i.e., insurance companies that are not licensed in a particular state or territory. Specific provisions of state of territorial law control placements.
Excess or surplus lines market
The range of insurance available through nonadmitted insurers—insurance companies that are not licensed in a particular state or territory. Specific provisions of state or territorial law control placements. The surplus lines market often provides coverage for risks the standard market is not willing to cover.
Excess per occurrence reinsurance
An excess of loss reinsurance where the reinsured’s retention and the reinsurer’s limit of liability apply to losses arising from a single occurrence regardless of the number risks or policies involved. This approach may be applied to both liability and property insurances.
Excess Per Risk Insurance
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 with respect to each risk involved in each occurrence.
Excess Per Risk Reinsurance
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.