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Attachment Point

In an excess of loss structure, the point at which the reinsured's retention is satisfied, and above which losses are ceded to the reinsurer.  The attachment point can be stated as a dollar amount or a percentage (such as in an aggregate stop loss agreement placed on a loss ratio basis).

 

Example:  In a $1,000,000 XS $500,000 excess of loss, the attachment point of the reinsurance is $500,000.