First Loss Retention (deductible)
Definition of "First loss retention (deductible)"
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.
Popular Insurance Terms
Report developed by or supplied by a credit agency to an insurer dealing with the financial standing and character of an insurance applicant. These factors are carefully weighted by the ...
Procedure in which a home office interviewer (who may or may not have underwriting experience) interviews applicants on the telephone. The questions asked the applicant are automated and ...
Type of disability income insurance that provides income payments to the wage earner when income is interrupted or terminated because of illness, sickness, or accident and can continue to ...
Policies that have their future cash values closely correlated with a high lapse ratio of the insurance company's book of business. In theory, gains resulting from these lapses will result ...
Clause in legal contracts that excuses a given party to the contract from liability for unintentional negligent acts and/or omissions. ...
Form of inland marine insurance under which an insured is indemnified for damage or destruction of his or her on-premises property if it is due to radioactive material stored or used within ...
Eligible rollover distribution that is paid directly from an employee's employee benefit insurance plan to the employee's individual retirement account (IRA) or to another plan maintained ...
Frequency with which employees resign, are fired, or retire from a company, usually computed as the percentage, of an organization's employees at the beginning of a calendar year. The ...
Arrangement in which individuals serve as trustees of their own living trust and name another party (successor trustee) to manage the assets if they should become incapacitated. In this ...
Have a question or comment?
We're here to help.