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.
Insurance Encyclopedia
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.
Excess per risk reinsurance (Reinsurance)
Reinsurance that covers the ceding company against a loss in excess of a particular retention for each particular occurrence.
Excess plan (Pensions)
A plan for retirement funding that takes into account social security.
Excess Point
Term used in excess of loss reinsurance for the point at which the reinsurance comes into effect.