Limited losses

{
  "id": "MLC-T-INS-002020",
  "term": "Limited losses",
  "field": "Insurance and risk management",
  "definition": "Losses truncated at a stated per-claim or per-occurrence maximum, so any amount above the cap is left out of the figure being analysed. Experience rating and retrospective rating plans use them so that one large claim does not dominate an insured's premium, for example through the per-claim accident limitation in workers' compensation experience rating. Ratemaking also uses losses limited to basic limits to compare policies with different limits.",
  "url": "https://mlchart.com/terminology/insurance/limited-losses/"
}