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Aggregate Excess of Loss Reinsurance (also known as Excess of Loss Ratio Reinsurance, Stop Loss 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.

Aggregate excess reinsurance

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.

Aggregate Indemnity

A maximum dollar amount which may be collected for any disability, period of disability, or under the policy.******Maximum amount for which an insured may collect for any disability, period of disability, or covered medical service under an insurance policy.******The maximum amount that may be claimed during a certain period or under the policy.
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The maximum amount that may be collected for any disability or period of disability under the policy.

Aggregate Limit

In liability Insurance, maximum amount of coverage that an Insurer will pay for all losses during a specific period of time, usually the contract period, no matter how many separate accidents may occur.******The maximum amount an insurer will pay under a policy in any one policy period.******The maximum amount of coverage available to the insured during a certain period, regardless of the number of accidents during that period.
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Usually refers to Liability insurance and indicates the amount of coverage that the insured has under the contract for a specific period of time, usually the contract period, no matter how many separate accidents may occur.

Aggregate limit of indemnity

The maximum amount that the insurer will pay in respect of all insured losses that occur during the policy term. No further claim is payable once the limit has been exhausted unless it has been reinstated by policy condition or agreement. Aggregate limits are common to professional indemnity insurance and product liability insurance. Under some covers the insurer may also impose a limit per claim or occurrence.

Aggregate Limit of Liability

Also known, as the “annual aggregate limit” this is a provision in liability insurance contracts that limits the maximum amount of liability an insurance company will pay in a given year.For example, suppose an insured has a liability policy that pays up to $100,000 per occurrence. Without an aggregate limit of liability, the insurance company is responsible for an unlimited number of occurrences. In order to limit the exposure, the policy may state that the company will pay up to $100,000 per occurrence up to a maximum of five occurrences a year. This limits the insurance company’s maximum exposure to $500,000.

Aggregate method

A prospective benefits funding method used to calculate contributions required to secure pension benefits. No standard contribution rate is determined. Instead a modified contribution rate is calculated as that which, if paid over the expected future membership of the active members, would be sufficient, taking account of the actuarial value of assets, to provide for the benefits. The modified contribution rate is also called the recommended contribution rate.

Aggregate monitoring

System used by insurer or managing agent to record, monitor and control their total aggregate exposures by country of risk, class of business, years of exposure or other appropriate variable. For example, in the exempted classes of financial guarantee insurance Lloyd’s calls upon managing agents to run systems that enable syndicates to avoid excessive exposure to any one obligor, industrial sector, location or insured nationality, in any one obligor country. The totals are regularly monitored to ensure that any limits are not exceeded.