Definitions for "Stop Loss Reinsurance"
Reinsurance which covers the total cost of claims within fixed limits
An agreement between a primary insurer and a reinsurer in which the reinsurer intervenes and assumes loss responsibility when losses exceed a plateau, either a given percentage of the ceding insurer's net earned premium or a fixed dollar amount up to a specified maximum. See aggregate excess insurance.
(1) See Aggregate Excess of Loss Reinsurance. (2) A form of reinsurance under which the reinsurer reinsures the ceding insurer for an amount by which the latter's incurred losses in a calendar year for a specified class of business exceed a specified loss ratio.