Stop-loss Insurance
Stop loss or excess loss insurance is purchased by a self-insured health plan to cover either individual or aggregate plan claims that exceed a specified dollar amount over a predetermined period. Generally there are two types of stop-loss coverage:
Specific; coverage after an individual has claims over a specified amount during one plan year, and
Aggregate; coverage after claims reach a certain dollar amount, usually 120-125 percent of expected claims, for the entire plan for one plan year.
