What is the Definition of Excess Of Loss Reinsurance?

What is the Definition of Excess Of Loss Reinsurance?

A contract between an insurer and a reinsurer, whereby the insurer agrees to pay a specified portion of a claim and the reinsurer to pay all or a part of the claim above that amount.

Source: Insurance Handbook A guide to insurance: what it does and how it works | https://www.iii.org/

Label: Insurance
Theme: Dictionary of Insurance Terms

Other Questions: What is the definition of Annuity?

What is the Definition of Excess Of Loss Reinsurance?

What is the Definition of Excess Of Loss Reinsurance?

You can find random definition and meaning of insurance terms below:

Meaning of Standard Risk Class in Insurance Terms

In insurance underwriting, the group of proposed insureds who represent average risk within the context of the insurer’s underwriting practices and therefore pay average premiums in relation to others of similar insurability. Contrast with Declined risk class, Preferred risk class and Substandard risk class.

Meaning of Statutory Accounting Principles/Sap in Insurance Terms

More conservative standards than under GAAP accounting rules, they are imposed by state laws that emphasize the present solvency of insurance companies. SAP helps ensure that the company will have sufficient funds readily available to meet all anticipated insurance obligations by recognizing liabilities earlier or at a higher value than GAAP and assets later or at a lower value. For example, SAP requires that selling expenses be recorded immediately rather than amortized over the life of the policy. (See Admitted assets; GAAP accounting)

Meaning of Straight Life Annuity in Insurance Terms

A type of life annuity contract that provides periodic income payments for as long as the annuitant lives but provides no benefit payments after the annuitant’s death. (See Life annuity)

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