Definition of "Excess loss cover"

Kaya Wittenburg real estate agent

Written by

Kaya Wittenburgelite badge icon

Sky Five Properties

Same as term Excess of Loss Reinsurance: method whereby an insurer pays the amount of each claim for each risk up to a limit determined in advance and the reinsurer pays the amount of the claim above that limit up to a specific sum. For example, assume that an insurer issues automobile liability policies of $150,000 on any one risk and retains the first $50,000 of any risk. The insurer purchases excess loss reinsurance for $ 100,000 in excess of $50,000 on any one risk. The insurer pays the first $50,000 of all losses, and the reinsurer pays any excess amount up to a maximum of $100,000.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Weighted average of the returns earned on the insurance company's investments in stocks, bonds, real estate, etc., made at different times and earning different rates of return at these ...

Amount of insurance remaining on a ceding company's books, net of the amount reinsured. ...

transfer of money from or an employer-sponsored pension or other qualified plan into an INDIVIDUAL RETIREMENT ACCOUNT (IRA) with out paying tax on the distribution. transfer of money from ...

Nominal interest rate minus the rate of inflation. ...

Same as term Excess of Loss Reinsurance: method whereby an insurer pays the amount of each claim for each risk up to a limit determined in advance and the re-insurer pays the amount of the ...

Deduction allowed for gifts and bequests to a spouse for federal estate and gift tax purposes. Under the Economic Recovery Tax Act of 1981 (ERTA), the deduction became unlimited. Prior to ...

In insurance, company revenues from underwriting and investment. Insurance companies make money first, by underwriting good risks so that their premium dollars cover claims losses and ...

Attachment to a property insurance policy that automatically adjusts its coverage according to the construction cost index in a community. This endorsement is necessary in a property ...

Coverage for an individual with a residual disability. Benefits are usually payable for the unused portion of the total disability benefit period up to age 65. If an individual is at least ...

Popular Insurance Questions