[L046]

line

1) Either the limit of insurance to be written on a class of risk which a company has fixed for itself ("net line"), or the actual amount which it has accepted on a single risk or other unit ("gross line").

2) A class or type of insurance (fire, marine or casualty, among others), also known as line of business.

3) The word "line" in reinsurance usually pertains to surplus reinsurance and means the amount of the reinsured's retention in regard to each risk. Thus, reference to a "two-line" reinsurance treaty pertains to a treaty which affords reinsurance for up to 200% of the reinsured's retention.