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Aggregate excess of loss

S

Snowy

Member
Hi
For the aggregate excess of loss which expresses the limits in excess of a stated amount eg 500000 excess of 500000 but only pays out losses in excess of 50000, then what does this mean exactly?
 
If you had an Aggregate XL contract 500 xs 500 with an interior deductible of 50, then you would apply the deductible to each individual claim amount before aggregating. For example, if you had losses of 40, 300, 400 and 150, these would become 0, 250, 350 and 100 after applying the deductible. This gives a total of 700. We therefore recover 200 from the Aggregate XL contract.

I hope this helps
Duncan
 
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