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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Threatening act, physical and/or verbal, which causes a person to reasonably fear for life or safety. For example, if a boxing champion said he was going to hit someone, this would probably ...
Maximum amount of insurance that an insurance company will issue on a particular risk exposure. This limit is used by the insurance company to avoid having to pay for a loss on the exposure ...
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Insurance that covers each and every loss except for those specifically excluded. If the insurance company does not specifically exclude a particular loss, it is automatically covered. ...
Type of excess of loss reinsurance in which the insurance company (cedent) receives payments from its re-insurer in a specific pattern of payments. ...
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