Insurance
Excess of Loss (XL) Reinsurance Premium
Paying the annual premium for a non-proportional XL treaty that covers catastrophic losses.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| XL Reinsurance Premium Expense | Expense (+) | 150,000.00 | - |
| Prepaid XL Premium (Asset) | Asset (+) | - | - |
| Cash / Bank | Asset (-) | - | 150,000.00 |
💡 Accountant's Note
XL treaties trigger only when losses exceed a specified retention. The premium is a fixed annual cost regardless of whether the layer is triggered. It is amortized over the treaty year.
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