The amount of insurance the primary company carries on a risk after deducting reinsurance from its "gross" line [see Net Retention].

The amount of loss sustained by an insurer after making deductions for all recoveries, salvage, and all claims upon reinsurers -- with specifics of the definition derived from the reinsurance agreement. Such net loss may or may not include claim expenses. As provided in the reinsurance agreement, net loss can be confined to the amount paid by the reinsured within applicable policy limits, or it can also include amounts paid by the reinsured for compensatory damages in excess of applicable policy limits because of failure of the reinsured to settle within applicable policy limits.

The amount of insurance which an insurer keeps for its own account and does not pass on to another insurer. In excess of loss reinsurance, the term "first loss retention" may be referred [see Net Line].

Assets owned by an insurance company which are not recognized for solvency purposes by state insurance laws or insurance department regulations, e.g., premiums due and uncollected past ninety days, and furniture and fixtures, among others.

1) An insurer not licensed in a given state.

2) A reinsurer not licensed or approved in a given state.

Reinsurance protection bought by a ceding company from a reinsurer not licensed or authorized to transact the particular line of business in the jurisdiction in question. No credit is given the ceding company for such nonadmitted reinsurance in its Annual Statement unless it withholds funds or holds a letter of credit on behalf of such unauthorized reinsurer, as shown in Part 2 of Schedule F of the Statement.

Reinsurance under which the reinsurer's participation in a loss depends on the size of the loss. Also known as Excess of Loss Reinsurance.