non-proportional treaty　

non-proportional treaty　非比例协约　

Under non-proportional reinsurance the reinsurer only pays out if the total claims suffered by the insurer in a given period exceed a stated amount，which is called the“retention”or“priority”.For instance the insurer may be prepared to accept a total loss up to$1million，and purchases a layer of reinsurance of$4million in excess of this$1million.If a loss of$3million were then to occur，the insurer would bear$1million of the loss and would recover$2million from its reinsurer.In this example，the insured also retains any excess of loss over$5million unless it has purchased a further excess layer of reinsurance.