Excess (nonproportional)reinsurance


Definition of "Excess (nonproportional)reinsurance"

Andrew  Karigan real estate agent
Andrew Karigan, Real Estate Agent Karigan Residential Group

Douglas Elliman of California Inc.

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.

 

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