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Stop-Loss Insurance


Stop-Loss Insurance

DEFINITION of 'Aggregate Stop-Loss Insurance' A policy designed to limit claim coverage (losses) to a specific amount. This type of coverage is to ensure that catastrophic claims (specific stop-loss) or numerous claims (aggregate stop-loss), do not upset the financial reserves of a self-funded plan.

What is a stop loss reinsurance agreement?

Stop loss (also called reinsurance or excess insurance) protects against catastrophic losses or large shock claims by protecting reserves after a certain threshold is reached, as well as protecting the integrity of the organization, and its cash flow.

What is a stop loss benefits?

Stop-loss insurance (also known as excess insurance) is a product that provides protection for self-insured employers by serving as a reimbursement mechanism for catastrophic claims exceeding pre-determined levels.