Page 279 - Ebook health insurance IC27

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Excess of loss : this is an arrangement wherein the reinsurer comes into picture only
when the losses in excess of the specified limit. The primary insurer may have excess of
loss treaty with more than one reinsurers.

Excess of loss ratio: in this method the treaties become operational when the net
claims ratio of the primary insurer in a particular financial year exceeds the specified
limits.

Pool arrangement: in case of large risk several reinsurers may create a common pool
of all premiums and claims. In the end of the financial year they may say of the profit or
loss.

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