Terms (Reinsurance Programs)

Treaty Type

One of the following treaty types:

•       Catastrophe Excess of Loss

•       Quota Share

•       Surplus Share

•       Per-Risk Excess of Loss

Required if you are creating a new record or editing an existing record

Treaty ID

User-specified name of this treaty

•       Required if you are creating a new record or editing an existing record

•       Must be unique within the reinsurance program

•       Cannot begin with a space

•       Can contain up to 100 characters

Target Type

One of the following types of exposure to which this treaty applies:

•       Portfolio

•       Contract

•       Location or Layer

•       The following table summarizes the applicable target type options per treaty type:

•       Required if the treaty type is one of the following:

•       Quota Share

•       Per-Risk Excess of Loss

•       Defaults to a value if the treaty type is Catastrophe Excess of Loss

Portfolio (if the treaty type is Catastrophe Excess of Loss)

Trigger Type

One of the following values to indicate the type of loss occurrence to which this treaty coverage applies:

•       The following table summarizes the applicable trigger type options per treaty type:

•       Required if the treaty type is one of the following values:

•       Quota Share

•       Surplus Share

•       Per-Risk Excess of Loss

•       Defaults to a value if the treaty type is Catastrophe Excess of Loss

Losses Occurring During (if the treaty type is Catastrophe Excess of Loss)

Percent Ceded

Ceded amount as a percentage

•       Required if you are creating a new record or editing an existing record

•       Defaults to a value

•       Must be a numeric value between 0 and 100, inclusive

100.00

Treaty Currency

Currency in which you are specifying these financial treaty terms

Defaults to a value in the Touchstone user interface

US Dollar (USD)

Risk Limit

Treaty limit for a single risk or layer

•       Applies only to Per-Risk Excess of Loss treaties

•       Must be a numeric value between 0 and 99999999999999, inclusive

Risk Retention

Treaty retention for a single risk or per layer

•       Applies only to Per-Risk Excess of Loss treaties

•       Must be a numeric value between 0 and 99999999999999, inclusive

Occurrence Limit

Maximum loss that this treaty can incur from each occurrence

Must be a numeric value between 0 and 99999999999999, inclusive

Occurrence Retention

Deductible amount 1

This treaty does not assume losses below the value specified in this field.

•       Applies only to treaties of the Catastrophe Excess of Loss treaty type

•       Must be a numeric value between 0 and 99999999999999, inclusive

Aggregate Limit

Maximum amount payable under this treaty that provides overall maximum loss limitation

A treaty cannot have both an aggregate limit and a reinstatement amount that is greater than 0.

•       Must be 0 if the reinstatement is greater than 0

•       Must be a numeric value between 0 and 99999999999999, inclusive

0.00

Aggregate Retention

Additional monetary amount or percentage of risk that the cedant retains under this treaty

•       Applies only to Catastrophe Excess of Loss treaties

•       Must be a numeric value between 0 and 99999999999999, inclusive

Percent Placed

Percentage of the limit that has been placed in the reinsurance market

•       Required if you are creating a new record or editing an existing record

•       Defaults to a value

•       Must be a numeric value between 0 and 100, inclusive

100.00

Reinstatement

Maximum number of times the risk limit can be reinstated after the application of a loss amount during the coverage period

You can specify a reinstatement value instead of an aggregate limit. If there are no reinstatements, the aggregate limit equals the occurrence limit. A treaty cannot have both an aggregate limit and a restatement amount that is greater than 0.

Enter 0 to represent no reinstatements or 99 to represent unlimited reinstatements.

•       Must be 0 if the aggregate limit is greater than 0

•       Applies only to Catastrophe Excess of Loss treaties

•       Must be a numeric value between 0 and 99, inclusive

Applies to Area

Geographic area to which treaty applies

Define a geographic area by clicking the down arrow and specifying the desired level of regional detail in the filter widget that appears. Then click Close.

Applies only to the following types of treaties:

•       Catastrophe Excess of Loss (CATXOL)

•       Quota Share

•       Per-Risk Excess of Loss (XPR)

Applies to Event

Applies only to the following types of treaties:

•       Catastrophe Excess of Loss

•       Quota Share

•       Per-Risk Excess of Loss

Applies to LOB

User lines of business (LOBs) to which this treaty applies

•       Applies only to the following types of treaties:

•       Catastrophe Excess of Loss

•       Quota Share

•       Per-Risk Excess of Loss

•       You can specify up to 200 lines of business for this field. To select additional lines of business, create another treaty in the same reinsurance program.

•       Enter "None" or another non-existent value if you do not want to apply reinsurance to your exposure data. If you leave this field blank, Touchstone will apply reinsurance to all LOBs.

Insurer's Coinsurance

Insurer's coinsurance amount

•       Applies only to Catastrophe Excess of Loss treaties

•       Required if you are creating a new record or editing an existing record

•       Defaults to a value

•       Must be a numeric value between 0 and 100, inclusive

100.00