Summary of agreement types

Reinsurance agreements are categorized into different types based on how the risk is shared. The agreement records the parameters to use in the calculation of how to divide the risk and how to distribute the premiums.

The following table shows the types of agreements in the default configuration. The marked cells indicate that the item applies to that agreement type.

Agreement Type	Treaty	Facultative	Per Risk	Aggregate	Policy Attachment	Loss Date Attachment
Non-proportional
Annual Aggregate	•			•		•
Per Event	•			•		•
Excess of Loss (XOL)	•		•		•	•
Net Excess of Loss (NXOL)	•		•		•	•
Facultative Excess of Loss		•	•		•
Facultative Net Excess of Loss		•	•		•
Proportional
Quota Share (QS)	•		•		•
Surplus	•		•		•
Facultative Proportional		•	•		•

The Policy Attachment column shows the types of agreements that apply to all losses against the policy for the entire term.

The Loss Date Attachment column shows the types of agreements that apply to a policy on the loss date. PolicyCenter chooses the agreement that is in effect on the loss date rather than the start date of the policy.

Excess of loss and net excess of loss treaties can be specified as either policy attachment or loss date attachment. You set these values in the Loss Attachment Basis field on the Treaty screen.