[C242]

contributing excess

A reinsurance term for when more than one reinsurer shares coverage on a particular line of insurance, i.e., general liability, and all are in excess of a particular retained limit. Example: There are three reinsurers. Each agrees to one-third of the loss above the $500,000 retained limit up to a limit of $1,000,000. In a million dollar claim, the insured will pay the first $500,000 and each of the three reinsurers will pay $166,000.