Answer:
Stop-loss reinsurance is a type of excess of loss reinsurance wherein the reinsurer is liable for the insured's losses incurred over a certain period (usually a year) that exceed a specified dollar amount or percentage of some business measure, such as earned premiums written, up to the policy limit.
Step-by-step explanation:
Stop loss reinsurance is a form of reinsurance under which the reinsurer pays the cedant's losses in any year over a particular percentage of the earned premium. Specific annual stop loss reinsurance limits the primary carrier's liability each year to a specified percentage of total ultimate incurred loss.