{"id":19811,"date":"2025-04-10T23:01:04","date_gmt":"2025-04-10T21:01:04","guid":{"rendered":"https:\/\/www.cconsulting.it\/glossary\/horizontal-cover\/"},"modified":"2025-04-10T23:01:04","modified_gmt":"2025-04-10T21:01:04","slug":"horizontal-cover","status":"publish","type":"glossary","link":"https:\/\/www.cconsulting.it\/en\/glossary\/horizontal-cover\/","title":{"rendered":"Horizontal Cover"},"content":{"rendered":"<p>It is the overall annual layer capacity. In a Non-Proportional Treaty <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Agreement&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;In XLayers the term Agreement refers to a generic Reinsurance contract whether it be Treaty or Facultative.Often in insurance terms the term contract is used as the insurance policy while in reinsurance and in XLayers in general the term Agreement always refers to the contract between a Company (Ceding Company) and one or more Reinsurers (Participants) for the transfer or ceding of part of the risk.&lt;\/div&gt;\"  href=\"https:\/\/www.cconsulting.it\/en\/glossary\/agreement\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Agreement<\/a>, it represents the ceded claims maximum amount (capacity) for a specific Layer.<br>\nWhen there are reinstatements present, it is determined from the sum of various reinstatement cover amounts anticipated plus the basic &ldquo;nominal&rdquo; cover (capacity) of the layer.<br>\nA layer with a cover of 1,000,000 and 2 Reinstatements anticipated will have a capacity or <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Horizontal Cover&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;It is the overall annual layer capacity. In a Non-Proportional Treaty Agreement, it represents the ceded claims maximum amount (capacity) for a specific Layer.When there are reinstatements present, it is determined from the sum of various reinstatement cover amounts anticipated plus the basic &amp;quot;nominal&amp;quot; cover (capacity) of the layer.A layer with a cover of 1,000,000 and 2 Reinstatements anticipated will have a capacity or horizontal cover of 3,000,000.Each claim payment ceded on a layer &amp;quot;erodes&amp;quot; the available capacity (cover).If one or more Claims or even part of a payment erodes all of the remaining available capacity, the layer is said to be saturated and any Claims that are ceded thereafter will have no effect on reinsurers and the amount ceded will remain as additional retention for the Ceding company.&lt;\/div&gt;\"  href=\"https:\/\/www.cconsulting.it\/en\/glossary\/horizontal-cover\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>horizontal cover<\/a> of 3,000,000.<br>\nEach claim payment ceded on a layer &ldquo;erodes&rdquo; the available capacity (cover).<br>\nIf one or more Claims or even part of a payment erodes all of the remaining available capacity, the layer is said to be saturated and any Claims that are ceded thereafter will have no effect on reinsurers and the amount ceded will remain as additional retention for the Ceding company.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It is the overall annual layer capacity. In a Non-Proportional Treaty <a class=\"glossaryLink\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Agreement&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;In XLayers the term Agreement refers to a generic Reinsurance contract whether it be Treaty or Facultative.Often in insurance terms the term contract is used as the insurance policy while in reinsurance and in XLayers in general the term Agreement always refers to the contract between a Company (Ceding Company) and one or more Reinsurers (Participants) for the transfer or ceding of part of the risk.&lt;\/div&gt;\" href=\"https:\/\/www.cconsulting.it\/en\/glossary\/agreement\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Agreement<\/a>, it represents the ceded claims maximum amount (capacity) for a specific Layer. When there are reinstatements present, it is determined from the sum of various reinstatement cover amounts anticipated plus the basic &ldquo;nominal&rdquo; cover (capacity) of the layer. A layer with a cover of 1,000,000 and 2 Reinstatements anticipated will have a capacity or <a class=\"glossaryLink\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Horizontal Cover&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;It is the overall annual layer capacity. In a Non-Proportional Treaty Agreement, it represents the ceded claims maximum amount (capacity) for a specific Layer.When there are reinstatements present, it is determined from the sum of various reinstatement cover amounts anticipated plus the basic &amp;quot;nominal&amp;quot; cover (capacity) of the layer.A layer with a cover of 1,000,000 and 2 Reinstatements anticipated will have a capacity or horizontal cover of 3,000,000.Each claim payment ceded on a layer &amp;quot;erodes&amp;quot; the available capacity (cover).If one or more Claims or even part of a payment erodes all of the remaining available capacity, the layer is said to be saturated and any Claims that are ceded thereafter will have no effect on reinsurers and the amount ceded will remain as additional retention for the Ceding company.&lt;\/div&gt;\" href=\"https:\/\/www.cconsulting.it\/en\/glossary\/horizontal-cover\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">horizontal cover<\/a> of 3,000,000. Each claim payment ceded on a layer &ldquo;erodes&rdquo; the available capacity (cover). If one or more Claims or even part of a payment erodes all of the remaining available capacity, the layer is said to be saturated and any Claims that are ceded thereafter will have no effect on reinsurers and the amount ceded will remain as additional retention for the Ceding company.<\/p>\n","protected":false},"author":1,"featured_media":0,"menu_order":0,"template":"","meta":{"inline_featured_image":false,"footnotes":""},"class_list":["post-19811","glossary","type-glossary","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.cconsulting.it\/en\/wp-json\/wp\/v2\/glossary\/19811","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cconsulting.it\/en\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/www.cconsulting.it\/en\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/www.cconsulting.it\/en\/wp-json\/wp\/v2\/users\/1"}],"version-history":[{"count":0,"href":"https:\/\/www.cconsulting.it\/en\/wp-json\/wp\/v2\/glossary\/19811\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.cconsulting.it\/en\/wp-json\/wp\/v2\/media?parent=19811"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}