What does Nonproportional Reinsurance mean? Read on to discover the definition & meaning of the term Nonproportional Reinsurance - to help you better understand the language used in insurance policies.
Also known as excess of loss reinsurance. Losses excess of the ceding company's retention limit are paid by the reinsurer, up to a maximum limit. Reinsurance premium is calculated independently of the premium charged to the insured. The reinsurance is frequently placed in layers. Contracts may be continuous or for a specific term.
We hope the you have a better understanding of the meaning of Nonproportional Reinsurance.