in a reinsurance policy, the aggregate amount that the insurer must retain before anything is paid by the reinsurer; for example £200,000 XS £100,000 with an aggregate retention of £500,000 means that a £150,000 loss would erode £50,000 of the aggregate; once the aggregate has gone, the reinsurance policy begins paying out, subject to the excess.
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Total (limit of indemnity, premium, retention etc).
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The greatest amount recoverable on account of a single loss or during a policy period, or on a single project.
In a managed care contract, the maximum amount (limit) for which a member is insured for any single event.
Deductible under which the insured retains the full amount of all otherwise insured losses until those retentions total a specified amount during a given calendar or fiscal year. Once this total is reached, the Insurer pays the full amount of al insured losses (subject to other Policy provisions) for the remainder of that calendar or fiscal year. Also called fixed-amount-per-year-deductible.
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A deductible that applies for the entire year.
A deductible provision in some property insurance contracts where all covered losses during a year are figured together and an insurer pays only when the aggregate deductible amount is exceeded.
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See: Annual Aggregate Deductible.
A deductible applied annually to the total amount paid in claims during a policy period. Claims are generally subject to a pre-occurrence deductible, the aggregate is the limit beyond which no further deductibles are applied.
A maximum limit to the deductible amount for partial loss claims under a full fleet Policy, irrespective of the number of vessels involved.
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.
A form of excess of loss reinsurance which, subject to a specified limit, indemnifies the ceding company for the amount by which all of the ceding company’s losses (either incurred or paid) during a specific period (usually 12 months) exceed either 1) a predetermined dollar amount or 2) a percentage of the ceding company’s subject premiums earned (loss ratio) for the specific period.
A type of excess reinsurance treaty that sometimes is called stop loss or excess of loss ratio reinsurance. The retention in this type of agreement is calculated based on all losses over the period of time that is stated in the treaty. The reinsurer is responsible for the amount of losses between the retention and the limit on the treaty.
Reinsurance contract provision meaning that when the reinsured’s losses exceed the annual aggregate deductible the reinsurer pays the whole of the loss without deduction.