What does Loss Ratio Coverage mean? Read on to discover the definition & meaning of the term Loss Ratio Coverage - to help you better understand the language used in insurance policies.
Loss Ratio Coverage
A form of stop loss reinsurance under which the reinsurer pays a portion of the claims represented by a loss ratio in excess of a specified loss ratio. For example, "20 percent in excess of 110 percent" will result in claims between 110 percent and 130 percent being paid by the reinsurer.
We hope the you have a better understanding of the meaning of Loss Ratio Coverage.