Coded Excess

Categories: Insurance

This is a very specific type of “excess of loss reinsurance” (when the reinsurance company pays for losses over a certain amount). With coded excess, the insured literally pays the reinsurance company for every risk they take, so the hope is that the premium paid is really accurate.

The movie Along Came Polly comes to mind. Ben Stiller types in all the facets of Jennifer Aniston’s character that make her a risk to date. Well, maybe these risks would have been NBD if he could have taken out a coded excess reinsurance policy on her.

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