What does Contributing Excess mean? Read on to discover the definition & meaning of the term Contributing Excess - to help you better understand the language used in insurance policies.
Where there is more than one reinsurer sharing a line of insurance on a risk in excess of a specified retention, each such reinsurer shall contribute toward any excess loss in proportion to its original participation in such risk. Example: Retention $100,000, Reinsurer A accepts one-half contributing share part of $1 million in excess of said $100,000. Reinsurer B accepts remaining one-half contribution share part of $1 million.
We hope the you have a better understanding of the meaning of Contributing Excess.