Coverage purchased by employers in order to limit their exposure under Self Insurance medical plans. This coverage is available in two types:
1. Specific stop loss-Coverage is initiated when a claim reaches the threshold selected by the employer. After the threshold is reached, the stop-loss policy would pay claims up to the lifetime limit per employee for the self insurance medical plan.
2. -Aggregate stop loss-Coverage is initiated when the employer's self insurance total group health claims reach a stipulated threshold selected by the employer. Typically, this threshold is 125% of the self insurer's annual estimated group health claims cost.
