meaning of AUTOMATIC NON-PROPORTIONAL REINSURANCE

AUTOMATIC NON-PROPORTIONAL REINSURANCE meaning in Law Dictionary

utomatic REINSURANCE protection for an INSURER that becomes effective when a defined loss restriction is surpassed, often implemented through a STOP REDUCTION CONTRACT or a CATASTROPHE PER OCCURRENCE EXCESS OF LOSS contract. See also AUTOMATIC PROPORTIONAL REINSURANCE.AUTOMATIC PROPORTIONAL REINSURANCE automated REINSURANCE coverage for an INSURER that becomes efficient oncea defined reduction restriction is surpassed, generally speaking implemented through asharing contract like a SURPLUS SHARE or QUOTA SHARE. See also AUTOMATIC NONPROPORTIONAL REINSURANCE.