What are excess layers?
Excess layer (aka Excess of Loss) insurance is when one insurer provides insurance for the first part of a claim/loss and then another insurer provides insurance for the next part of the claim/loss. The insurance for the next part of the claim/loss is referred to as the Excess Layer.
What is a working layer in insurance?
Working Layer — a dollar range in which an insured or, in the case of an insurer's book of business, a group of insureds is expected to experience a fairly high level of loss frequency. This is the layer typically subject to deductibles, self-insured retentions (SIRs), retrospective rating plans, and similar programs.
What is primary layer insurance?
Primary insurance is the policy that covers a financial liability for the policyholder as a result of a triggering event. Primary insurance kicks in first with its coverage even if there are other insurance policies. Excess insurance covers a claim after the primary insurance limit has been exhausted or used up.
What is insurance issue limit?
A guaranteed issue limit is the maximum amount for which an insurance company will insure an individual without receiving information concerning their insurability, i.e. a medical exam. Any time you can get higher limits without proving insurability - that's a good thing!