The expected claims of a given group can usually be predicted with a fair amount of accuracy and thus become budgetable. Should these expected claims be incurred by a surprisingly high number of participants, an unforeseeable negative fluctuation would occur. It is difficult, if not impossible, to budget for the uncertainties, the unforeseen.
Obviously, the financial impact of any unforeseen fluctuation could severely jeopardize the stability of a company. What can you do to protect your company's assets and preserve your cash flow?
Aggregate Stop Loss Reinsurance may be viewed as a precautionary measure - designed to protect you from the unexpected. Your loss ends when your annual Aggregate Deductible is reached.
With Aggregate Stop Loss Reinsurance, the insurance company is serving the function it is designed for: protection against adverse risk. Therefore, you assume responsibility for the predictable and the insurance company assumes the responsibility for the unpredictable.
As with Specific Stop Loss Reinsurance, JAD Solutions, LLC will automatically monitor the accumulative paid amount during the plan year for each of their clients and communicate to the proper parties to ensure no valid Aggregate Stop Loss claim is lost.