An aggregate stop-loss policy is insurance that protects a company against higher-than-anticipated claims. The policy pays out when the total amount of claims exceeds a certain threshold, known as the attachment point. This type of policy can shield a company from catastrophic losses, and can be particularly useful for companies with large self-insured retention limits.
What is the difference between per-occurrence and aggregate?
Per-occurrence insurance coverage provides protection for a policyholder in the event that they are sued for damages related to a single incident. This type of coverage is often included in business liability insurance policies. Aggregate insurance coverage provides protection for a policyholder in the event that they are sued for damages related to multiple incidents. This type of coverage is often included in business liability insurance policies.
How does aggregate excess work?
In the insurance industry, aggregate excess is a type of reinsurance that provides protection to an insurer against multiple loss events that exceed a stated amount during a policy period. The aggregate excess reinsurance policy pays losses that exceed the stated amount, up to the policy limit.
In essence, aggregate excess reinsurance protects an insurer's capital base by sharing the risk of large loss events. This type of reinsurance is typically used by insurance companies that write property and casualty insurance, such as homeowners insurance, automobile insurance, and workers' compensation insurance.
What does it mean to aggregate a claim?
An aggregate claim is a claim that is made against a company as a whole, rather than against a specific individual or department within the company. This type of claim is usually made in cases where the company is accused of wrongdoing that has caused harm to a large number of people.
What is aggregate stop-loss reinsurance?
Aggregate stop-loss reinsurance is a type of reinsurance that provides protection to an insurer against losses in excess of a specified amount over a specified period of time. The insurer pays a premium to the reinsurer, and in return, the reinsurer agrees to pay all losses in excess of the specified amount. Aggregate stop-loss reinsurance is typically used to protect against large, unpredictable losses. What is expected annual aggregate loss? The expected annual aggregate loss is the amount of money that an insurance company expects to pay out in claims over the course of a year. This number is used to help set premiums, and is based on historical data and current trends.