[P191]

per risk excess reinsurance

A reinsurance term, it refers to excess coverage that applies to each given risk rather than on an occurrence or an aggregate basis. For example, Alpha Re agrees to reinsure Regular Fire & Casualty's losses on four-family dwellings only if a loss per risk exceeds $50,000. So if a city block containing five Regular Fire & Casualty four-family dwellings was lost in a fire, Alpha Re must pay the first $50,000 on each of the five dwellings ($250,000).