Stop loss policy (insurance)
Encyclopedia
In health insurance
, a stop loss policy is a policy that takes effect after a certain amount has been paid in claims. Companies providing health insurance for their employees through a self-insured plan often subscribe to stop loss policies in order to protect themselves against catastrophic claims. The Organisation which takes the insurance policy is called Insured and the employees and other people who are covered the policy are called Participants. Most of the time there is a Annual Limit for Stop Loss Amount for each Participant and Aggregate Amount for each Policy year. The premium is calculated for each employee for each month. The premium is based on the number of participants, age of the participants and various other information.
Health insurance
Health insurance is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care expenses among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is...
, a stop loss policy is a policy that takes effect after a certain amount has been paid in claims. Companies providing health insurance for their employees through a self-insured plan often subscribe to stop loss policies in order to protect themselves against catastrophic claims. The Organisation which takes the insurance policy is called Insured and the employees and other people who are covered the policy are called Participants. Most of the time there is a Annual Limit for Stop Loss Amount for each Participant and Aggregate Amount for each Policy year. The premium is calculated for each employee for each month. The premium is based on the number of participants, age of the participants and various other information.