An insurance arranged by tour operators in connection with US and Canada fly-drive holidays. The car company effects third party cover for limits in excess of the statutory minimum for the benefit of the car users. Nonetheless the high level of damages awarded to the victims of road accidents in North America may exceed the cover provided. The purpose of excess liability insurance is to cover the liability that is uninsured under the car company’s insurance arrangements.

A form of excess of loss ratio reinsurance. The excess point is recalculated each year as a moving average of the loss ratio experienced over an agreed number of preceding years. The ceding office agrees to bear an agreed share of any loss in excess of that average.

The marine insurance equivalent of surplus reinsurance. As a rule the retention is based on a table of limits graded according to the class of the carrying vessel. Retentions are based on total sums insured and not estimated maximum loss (EMLs) as in fire insurance.

UK: a form of non-proportional reinsurance under which the reinsurer agrees to indemnify the cedant for losses in excess of a specified amount (the cedant’s retention), either in respect of each risk or for claims in aggregate arising from a particular occurrence.
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A form of reinsurance under which recoveries are available when a given loss exceeds the cedant’s retention defined in the agreement.
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A type of reinsurance that covers specified losses incurred by the reassured in excess of a stated amount (the excess) up to a higher amount, for example £5 million excess of £1 million. An excess of loss reinsurance is a form of non-proportional reinsurance.
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US: The reinsurance limit attaches above a per occurrence or aggregate limit.

Aircraft fleets can be insured on the basis that the deductible is so large that the owner is virtually his own insurer except for very large losses. The schemes can take a variety of forms, e.g. (a) the insurer paying if the claims arising from any one accident exceed a figure that is an appreciable percentage of the value of the aircraft; (b) similarly, but the excess is a percentage of the total value of the fleet; (c) the insurer paying only losses which, taken over the whole fleet during the course of the year, exceed a certain percentage of the value of the fleet.

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.

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.

In excess of loss reinsurance, the insurer fixes a point up to which he will retain losses for his own account (his retention). This is the excess point as losses above this level will be payable wholly or partly by the reinsurer up to a limit, the second excess point.