Cumulative Collusive Excess Cover

Categories: Insurance

Insurance companies purchase reinsurance contracts in order to reduce their risk exposure, so they can write more insurance policies. The company will share a percentage of the premium amounts, but the reinsurer also takes on responsibility for any losses, up to a certain limit. When they share losses over that limit, it’s called a cumulative collusive excess cover. Only an insurance company could come up with a name like that.

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