A REINSURANCE arrangement where a REINSURER assumes RISKS and returns in specific horizontal or vertical layers; depending on the magnitude of losses and the sequence and level of ATTACHMENT a reinsurer may or may not face some CESSION and allocation of losses on each loss event. See also PROPORTIONAL AGREEMENT, QUOTA SHARE, SURPLUS SHARE.
Link to This DefinitionDid you find this definition of EXCESS OF LOSS (XOL) AGREEMENT helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary