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An Aggregate Excess (aka a Deductible) is a predetermined amount that the insured will bear in any one year for all insured losses occuring during that year.

The amount can be stated as a dollar amount (ie. $xxxxx), as a percentage of the annual premium (ie. xx% of $AP), or as a predetermined percentge of the loss ratio (ie. insured to bear all losses under xx% of claims/AP%).

An Annual Aggregate Excess is normally agreed by calculating the expected losses, using the prior history of insured losses and adjusting for trends etc..

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