Glossary

L

Leading insurer

Primary insurer and first signatory of an insurance policy in a co-insurance. The signatory company defines the clauses and the conditions of the policy.

Liquidation bonus

Profit earned on liquidation of technical reserves on settlement of a claim or expiration of a Treaty.

Loss

Event that triggers insurance cover and reserves noticing.

Low or working layer excess of loss reinsurance

Reinsurance that absorbs the losses immediately above the reinsured's retention layer. A low layer excess of loss reinsurer will pay up to a certain monetary amount at which point a higher layer reinsurer or the ceding company will be liable for additional losses.  Also known as working layer reinsurance.