[R069]

retention

1) The amount which an insured or an insurer assumes as its own liability and which is not insured otherwise.

2) In reinsurance, the amount which a primary insurer assumes for its own account. In pro rata reinsurance contracts, the retention may be a percentage of the policy limit. In excess of loss contracts, the retention is a dollar amount of loss.

(See Net Retention, and Net Line.)

Copyright: The Rough Notes Company, Inc., 1998, All Rights Reserved. 3040100