LIMIT AND RETENTION Clause Samples
The LIMIT AND RETENTION clause sets the maximum amount an insurer will pay for a claim (the limit) and the portion of loss the insured must cover before insurance applies (the retention or deductible). In practice, this means the insurer is only responsible for losses above the retention amount and up to the specified limit, regardless of the total loss incurred. This clause helps allocate financial responsibility between the insurer and insured, ensuring that minor losses are handled by the insured while the insurer covers larger, potentially catastrophic claims up to a defined cap.
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LIMIT AND RETENTION. A. No claim shall be made in any one Loss Occurrence unless at least two risks insured or reinsured by the Company are involved in such loss occurrence. For purposes hereof, the Company shall be the sole judge of what constitutes one risk.
B. The Subscribing Reinsurer shall be liable in each and every Loss Occurrence, for the Ultimate Net Loss above an initial net loss to the Company of $700,000,000 provided, however, that the Subscribing Reinsurer shall not be liable for more than $100,000,000 of each and every such Loss Occurrence.
LIMIT AND RETENTION. A. Under this Exhibit the Subscribing Reinsurer shall be liable for the Ultimate Net Loss in excess of $500,000,000 each Loss Occurrence (regardless of the number of policies under which such loss is payable or the number of different interests insured) subject to a limit of $200,000,000 each Loss Occurrence. The maximum contribution to the Ultimate Net Loss shall be limited to a maximum per life recovery of $10,000,000 (discounted to net present value in accordance with the provisions of Article 10 — Commutation).
B. Notwithstanding Subscribing Reinsurer’s liability on each Loss Occurrence, Subscribing Reinsurer’s liability shall further be limited to $400,000,000 for all such loss occurrences recoverable during the term of this Contract.
C. It is understood and agreed that the limit and retention described above applies to both the Company, and to Liberty Mutual Insurance Company, Liberty Mutual Fire Insurance Company, and all of their affiliates (other than the Company and the Legal Entities) (hereinafter “the LMG Companies”). Any loss occurrence affecting both the LMG Companies, on the one hand, and the Company and the Legal Entities, on the other, shall be combined with respect to the application of the limit and retention set forth herein. The reinsurance recovery will be calculated assuming the LMG Companies have the same co-participation as the Company. The recovery will then be allocated to the Company in the same ratio that the Ultimate Net Loss bears to the total Ultimate Net Loss of the Company and the Legal Entities, on the one hand, and the LMG Companies, on the other hand.
LIMIT AND RETENTION. The Retrocessionaires shall be liable in respect of each and every loss occurrence over and above an initial Ultimate Net Loss of $145,000,000 each and every loss each and every loss occurrence, subject to a limit of liability to the Retrocessionaires of $55,000,000 Ultimate Net Loss each and every loss or series of losses arising our of one loss occurrence. Nevertheless, the limit of liability to Retrocessionaires for all occurrences arising under this Agreement shall be limited to $110,000,000.
LIMIT AND RETENTION. A. Under this Exhibit the Subscribing Reinsurer shall be liable for the Ultimate Net Loss in excess of $100,000,000 each Loss Occurrence (regardless of the number of Policies under which such loss is payable or the number of different interests insured) subject to a limit of $100,000,000 each Loss Occurrence. The maximum contribution to the Ultimate Net Loss shall be limited to a maximum per life recovery of $10,000,000 (discounted to net present value in accordance with the provisions of the Commutation Article).
B. Notwithstanding the Subscribing Reinsurer’s liability on each Loss Occurrence, the Subscribing Reinsurer’s liability shall further be limited to $200,000,000 for all such loss occurrences recoverable during the term of this Contract.
LIMIT AND RETENTION. No claim shall be made in any one Loss Occurrence unless at least two risks insured or reinsured by the Company are involved in such loss occurrence. For purposes hereof, the Company shall be the sole judge of what constitutes one risk.
LIMIT AND RETENTION. Reinsurers shall not be liable for any loss hereunder until the Company’s Ultimate Net Loss exceeds $10,000,000 each Loss Occurrence and then Reinsurers shall be liable for the amount of Ultimate Net Loss in excess of $10,000,000 with a limit of liability to Reinsurers of $15,000,000 Ultimate Net Loss each Loss Occurrence.
LIMIT AND RETENTION. A. The limits and retentions provided under this Contract are as set forth in the Exhibits A., B. and C. attached hereto and made a part of this Contract.
B. The Company’s retention and the Subscribing Reinsurer’s limit of liability for each Loss Occurrence, set forth in Section I of the Exhibits A., B. and C. attached hereto, shall apply irrespective of the number of Policies affected or number of hazards in one Policy, except as provided for in the Warranties Article.
C. Reinsurance of the Company’s retention, set forth in each Exhibit, shall not be deducted in arriving at the Ultimate Net Loss herein.
LIMIT AND RETENTION. A. The Company shall retain for its own account and pay under one or more of the Company's policies the first $1,000,000 ultimate net loss, each and every claim made for indemnity only during the term of this Agreement and the Reinsurer agrees to reimburse the Company for the amount of ultimate net loss paid in excess of $1,000,000, each and every claim made for indemnity only during the term of this Agreement, but the Reinsurer's maximum liability shall not exceed 100% of $9,000,000 resulting from each and every claim made for indemnity only during the term of this Agreement.
B. The term "claim made" shall be as defined in the Company's Original Policies.
C. The Company's retention shall be the difference between $1,000,000 each and every claim made for indemnity only and the underlying Self Insured Retention (S.I.
LIMIT AND RETENTION. A. The limits and retentions provided under this Contract are as set forth in Exhibits A and B attached hereto and made a part of this Contract.
B. The Company’s retention and the Subscribing Reinsurer’s limit of liability for each Loss Occurrence, set forth in Section I of Exhibits A and B attached hereto and made part of this Contract, shall apply irrespective of the number of Policies affected or number of hazards in one Policy and regardless of the number of Lines of Business involved, except as provided for in Article V — Warranties.
C. In the event both a Property and Casualty loss are involved in the same Loss Occurrence, it is understood that the Company shall retain for its own account only the first $5,000,000 of the combined Property and Casualty Ultimate Net Loss, provided only one Property Risk may be combined in the same Loss Occurrence. Such loss and the Company’s retention thereon shall be apportioned to each Property and Casualty loss in the same proportion that the Company’s Ultimate Net Loss for each such Property and Casualty loss bears to the combined Ultimate Net Loss from both losses. The Subscribing Reinsurer shall reimburse the Company for the difference between the Ultimate Net Loss under each Property and Casualty loss and the pro rated retention on each Property and Casualty loss.
D. Reinsurance of the Company’s retention, set forth in each Exhibit, shall not be deducted in arriving at the Ultimate Net Loss herein, except that recoveries from the Public Entities Legal Liability Quota Share Reinsurance Contract shall inure to the benefit of this Contract.
LIMIT AND RETENTION. Under this Exhibit the Subscribing Reinsurer shall be liable for the Ultimate Net Loss in excess of $1,000,000,000 each Loss Occurrence (regardless of the number of policies under which such loss is payable or the number of different interests insured) subject to a limit of $200,000,000 each Loss Occurrence. The maximum contribution to the Ultimate Net Loss shall be limited to a maximum per life recovery of $10,000,000 (discounted to net present value in accordance with the provisions of Article 10 — Commutation).