contributing excess


The agreed percentage of a claim amount that each of several reinsurers sharing coverage for a policy will pay in the event that the losses are in excess of the retained limit amount. For example, a policyholder files a claim for $150,000 but $50,000 of that amount is in excess of the amount payable by the original insurer and any other applicable insurance. Two reinsurers agree to split the responsibility for the balance and contribute an additional $25,000 each to cover the excess amount of the loss.
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contributed surplus contributing location