Definitions for "Shock Loss"
A large loss that significantly affects the true claims experience of a group. Typically defined as any claim which exceeds the greater of $10,000 or the specific deductible of the stop-loss contract.
A loss so devastating that it has a material effect on the underwriting results of the company.
A large loss that significantly affects the experience of a group. Generally claims on a single claimant during a single contract period totaling more than 50% of the Specific Stop Loss deductible.