Specific annual stop loss reinsurance limits the primary carrier's liability each year to a specified percentage of totalultimate incurred loss.

With stop loss reinsurance, the part paid by the reinsurer is not determined by the aggregate claims of theindividual policy, only by the aggregate claims of the whole portfolio.

Stop loss reinsurance is a form of reinsurance under which the reinsurer pays the cedant's losses in anyyear over a particular percentage of the earned premium.