# How is reinsurance reinstatement premium calculated?

**Reinsurance Premium**= (Loss to the

**Reinsurer**/Cover Limit) * No of days from date of loss/365*

**Reinsurance Premium**. During the

**reinsurance**period, the

**reinstatement premium**is

**calculated**based on the minimum and deposit

**premiums determined**at the beginning of the year.

Thereof, how is reinstatement premium calculated?

**Example 3 (Calculation of Reinstatement Premiums)**

- Reinstatement Premium = (Subject Premium) x (Loading Factor) x (XL Loss Load / Layer) x Date Factor.
- The date factor in the above formula is determined by the calculation method for the reinstatement premium.
- However, if the calculation method is Pro Rata Temporis the date factor is calculated as follows:

One may also ask, what is meant by reinstatement in insurance? **Definition** of '**Reinstatement**' **Definition**: If an **insured** person fails to pay the premium due to various circumstances and as a result the **insurance** policy gets terminated, then the **insurance coverage** can be renewed. This process of putting the **insurance** policy back after a lapse is known as **reinstatement**.

Beside above, what is reinstatement premium in reinsurance?

Definition. **Reinstatement Premium** — a prorated insurance or **reinsurance premium** charged for the **reinstatement** of the amount of a primary policy or **reinsurance** coverage limit that has been reduced or exhausted by loss payments under such coverages.

How does excess of loss reinsurance work?

**Excess of loss reinsurance** is a type of **reinsurance** in which the **reinsurer** indemnifies the ceding company for **losses** that exceed a specified limit. **Excess of loss reinsurance** is a form of non-proportional **reinsurance**.