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Stop Loss Reinsurance:

A specialised form of excess of loss reinsurance, usually applicable to certain lines of insurance showing wide loss variation. For example, hail insurance, where four good years might be followed by a calamitous one. Stop loss reinsurance differs materially from the usual excess of loss treaty as the reinsurer is not responsible for the amount by which any individual claim exceeds a fixed sum, but instead indemnifies the ceding company in respect ...
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