Page 72 - Liability Insurance IC74

The Insurance Times

premises that a person occupies, committed by or
on behalf of its owner or landlord or lessor.

(iv) Oral or written publication of material that slanders
or libels a person or organization or disparages a
person or organization's goods, products or services.

(v) Oral or written material that violates a person's right
of privacy.

(vi) Infringing upon another's copyright, trade dress or
slogan in one's advertisement.

(b) Stop loss treaty - Stop Loss treaty is a variation of
the excess of loss treaty. The treaty operates in respect
of the annual loss ratio incurred and not in respect of
any fixed amount of the underlying retention. The treaty
is arranged to cover, say, 80% a percentage of all losses
in excess of a loss ratio, of say, 90% up to and including
a loss ratio of say 120%.

The reinsurer's liability arises when the loss ratio
exceeds the agreed percentage. It is usual to limit the
reinsurer's liability to a maximum amount, in addition to
the percentage limit. It is observed that the ceding
company has to bear 20% of all losses in excess of the

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