Excess Per Risk Reinsurance
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 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 re-insurer pays any excess amount up to a maximum of $100,000.
Popular Insurance Terms
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Approach in loss prevention placing emphasis on physical features of the workplace as a potential cause of injuries. For example, if a product is inherently dangerous in design or during ...
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Policy that has many similar characteristics to that of the survivor-ship annuity in that the annuitant receives a predetermined monthly income benefit for life upon the death of the ...
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