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Established
Glossary - E
ESCAPE CLAUSE
A clause providing that the reinsurer may terminate the contract due to some specified (sometimes very particular) reasons.

EXCESS OF LOSS

A form of non-proportional reinsurance in which an insurers participation in covering losses for a specified risk or risks is limited to stated amounts.

Excess of loss treaty

reinsurance treaty under which the reinsurer assumes the loss expenditure in excess of a particular amount (→ priority) (e.g. under an excess of loss treaty). This is in contrast to → proportional reinsurance.

Expense ratio

administrative expenses in relation to the (gross or net) premium written.

Exposure

level of danger inherent in a risk or portfolio of risks; this constitutes the basis for premium calculations in reinsurance.
 
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