In the XL Treaty Layers List block, you can define the layers for the treaties that were defined in the XL Treaty block. Layers refer to the layers of coverage within the treaty. To define a layer, select the treaty from the XL Treaty List block, click in the XL Treaty Layer List block, and perform the following steps:

 

§  Note that the Treaty Name, Treaty Number, and Layer Number will automatically be displayed;

§  Enter the Max Excess Limit, which is the maximum amount covered by this layer;

§  Enter the In Excess of amount; which is the maximum amount after which the insurance company will not cover losses;

§  The Capacity field will automatically be updated with the sum of the Max Excess Limit and the In Excess of amount;

§  Select the Rate Type; either ‘Fixed’ or ‘Adjustable’. If you select ‘Fixed’, then both the Minimum Rate and Maximum Rate will be the same. If you select ‘Adjustable’, then the system will calculate the actual GNPI and compare it with the estimated GNPI. If the rate is less than the Minimum Rate then the rate taken will be the minimum rate. If the rate is more than the Maximum Rate, then the rate taken will be the maximum rate. Otherwise, the payment amount will be the actual rate;

§  Enter in the Aggregate Limit. This is the max limit covered by this layer.

§  Enter the Minimum Deposit Premium, which is the minimum amount to be paid by the insurance company to the reinsurer to cover losses;

§  Enter the Loading Factor;

§  Enter in the Reinstatement Count. This is the number of times that you can reactivate the layer;

§  Enter in the Reinstatement Account. This is used to enter the account for reinstatement voucher;

§  Enter the Reinstatement cost Center This is used to enter the cost center for the  reinstatement voucher;

§  The Current Reinstatement will be auto displayed depending on the consumed reinstatements from the total reinstatement count ;

§  Select one of the Reinstatement Methods whether it is Pro Rata Capita or Pro-Rata Temporize (Explained in the Reinstatement Adjustment section )

§  Enter the Deposit Account This is used to enter the account for deposit voucher;

§  Enter the Deposit Cost Center This is used to enter the cost center for the  deposit voucher;

§  Select the Deposit Type from the predefined list;

§  Note: If the select deposit type was Deposit then the Adjustment will be refundable, otherwise it will be non-refundable’

§  Once you have finished entering all necessary data, click.