A method of allocating automatic reinsurance among several reinsurers.
Using this method, reinsurance is ceded in layers. The layers are defined in terms of amounts of insurance. One reinsurer will receive all reinsurance up to the limit of the first layer. A second reinsurer will receive all reinsurance in excess of the first layer up to the limit of the second layer, and so forth, depending on the number of layers.
See First Excess, Layer, and Second Excess.