Common use of Second Layer Clause in Contracts

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 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. Terrorist Activity Annual Aggregate Limit: $1,500,000 ultimate net loss in the aggregate for all loss occurrences each calendar year.