Automatic REINSURANCE coverage for an INSURER that becomes effective once a defined loss limit is exceeded, often implemented through a STOP LOSS AGREEMENT or a CATASTROPHE PER OCCURRENCE EXCESS OF LOSS contract. See also AUTOMATIC PROPORTIONAL REINSURANCE .AUTOMATIC PROPORTIONAL REINSURANCE Automatic REINSURANCE coverage for an INSURER that becomes effective oncea defined loss limit is exceeded, generally implemented through asharing agreement such as a SURPLUS SHARE or QUOTA SHARE . See also AUTOMATIC NONPROPORTIONAL REINSURANCE.
Black’s Law Online Dictionary
