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Glossary of Terms

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From The Glossary »

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Second Surplus Treaty:

A reinsurance treaty required by companies writing business with large sums insured. Examples of business carrying such large sums insured include commercial and industrial property risks. These treaties provide for the lines which are too large to be embraced in a first surplus treaty. A second surplus treaty follows a first surplus but provides a diminished spread of risks to the reinsurer compared with a first surplus treaty. It is possible to ...
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