Second Layer Clause Samples

The 'Second Layer' clause establishes an additional level of protection, responsibility, or process within an agreement, typically supplementing a primary or first layer. In practice, this clause might require a secondary insurance policy, an extra review step, or a backup system to be in place, depending on the context of the contract. Its core function is to provide redundancy or enhanced security, ensuring that if the first layer fails or is insufficient, the second layer will address the shortfall, thereby mitigating risk and increasing reliability.
Second Layer. FCIC’s participation on this layer shall be one hundred percent (100%) of the amount by which the Company’s aggregate ultimate net losses exceeds five hundred percent (500%) of aggregate net book premium retained by the Company.
Second Layer. 1. The premium for the reinsurance provided under this Agreement shall be computed at the rate of 5.166% of the Company’s gross net written premium on the business covered hereunder. 2. The annual minimum premium for the reinsurance provided under this Agreement is $354,000. 3. The annual deposit premium for the reinsurance provided under this Agreement is $416,000.
Second Layer. The Company shall retain the first $250,000 of ultimate net loss each risk, each occurrence. The Reinsurer shall indemnify the Company for 100% of the amount by which the ultimate net loss exceeds the Company’s retention, but the liability of the Reinsurer shall not exceed $750,000 ultimate net loss each risk, each occurrence, and is further subject to the limits set forth below: $1,500,000 ultimate net loss for all risks in any one loss occurrence. $1,500,000 ultimate net loss in the aggregate for all loss occurrences each calendar year.
Second Layer. The Company shall retain the first $250,000 of ultimate net loss each risk, each occurrence. The Reinsurer shall indemnify the Company for 100% of the amount by which the ultimate net loss exceeds the Company’s retention, but the liability of the Reinsurer shall not exceed $750,000
Second Layer. FCIC’s participation on this layer shall be one hundred percent (100%) of the amount