In a Non-Proportional Treaty, an aggregate limit represents the maximum amount from claims which can be ceded before reaching the cap set for a specific layer.
Each claim payment ceded on a layer „consumes“ the available capacity.
If one or more claims or even part of a payment completely uses up the remaining cap limit available, the layer is said to be Saturated and any successive claims ceded will have no effect on the Reinsurers and the amount ceded will remain as additional retention of the Ceding Company.
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