Reinsurance

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Reinsurance

The spreading of risk and division of client premiums among insurance companies allowing the sharing of the burden of a large risk.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Reinsurance

An insurance policy for insurers. In reinsurance, one insurer cedes a portion of its portfolio of policyholders to another insurer in exchange for paying a fee. There exists the possibility that too many policyholders will make a claim and a single insurer will be unable to pay the benefit without ruining itself. This is especially true for disaster insurance and other similar policies. Reinsurance reduces this risk. It is also called stop-loss insurance.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

reinsurance

see INSURANCE COMPANY.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
At the same time, reserves shouldn't be greater than the amount that would be covered by aggregate stop-loss insurance. In practice, this can be a complicated calculation, and many governments use a dollar amount that's equal to two or three months' worth of claims as a rule of thumb (in addition to the amount required for IBNR).
The opponents cite North Carolina as an example of a state that's tried to prevent what it sees as stop-loss abuse by regulating small stop-loss insurance plans as if they were ordinary health insurance plans.
This model must consider the risk associated with self-insurance as well as the opportunity to mitigate that risk by purchasing stop-loss insurance. To fully assess this choice, the model must include the different stop-loss alternatives available to the firm, the pricing of stop-loss coverage, and the effect of these policies on risk.
"Specific" stop-loss insurance. Specific stop-loss insurance protects against a catastrophic loss incurred by any individual covered by the plan, with the deductible set at a level appropriate for the size and financial strength of the company.
The administrator works with group insurance brokers and insurance firms to obtain quotes and find the appropriate stop-loss insurance plan that fits the employer's needs.
Sun Life Insurance and Annuity Company of New York offers medical stop-loss insurance for New York state employers with self-funded medical plans.
Survey results also feature utilization statistics, including average bed days and admits per 1,000 members; statistics on stop-loss insurance premium amounts, attachment points and providers' purchase habits; capitation revenue and profitability trends; and contract characteristics.
Cairnstone Re managed employer stop-loss insurance and provided catastrophic claims management assistance to more than 450 self-funded employer groups covering 300,000 lives in the US.
A must for all self-insurers: a stop-loss insurance provider as umbrella coverage.
The law firm's health plan involved stop-loss insurance and required after-tax contributions by employees.
Medical groups may also decrease their risk by reducing their revenues, increasing the use of subcapitation agreements or purchasing of stop-loss insurance.
We've also dropped the cost of aggregate stop-loss insurance. This is relevant to those companies that self-fund.