BattleQuiz 1
Hi,
For this card: Identify two primary differences between LDD and excess insurance and briefly describe how each may directly affect the cost. What is the "excess insurance" referring to? Is it referring to SIR?
Thanks!
Hi,
For this card: Identify two primary differences between LDD and excess insurance and briefly describe how each may directly affect the cost. What is the "excess insurance" referring to? Is it referring to SIR?
Thanks!
Comments
Hi,
In this situation "excess insurance" is a bit more general. It does refer to a Self-Insured Retention but also refers to any insurance where the layer being insured does not start from the ground up. The primary insured could have chosen to retain all losses below the layer as in a SIR or they could have other insurance to cover some of the primary layer losses.
Got it thanks! Is there any other loss sensitive plans that are excess insurance other than SIR?
It's probably best to think of all excess insurance as being a form of SIR. It all depends on whose perspective you're looking at. The insurer offering the excess insurance doesn't care (much) about how the policyholder is handling the retained layer. In other words, the policyholder could truly be retaining all of the SIR retention or have some other insurance contract with another provider to cover part of that layer.