Limited Loss Carry Forward

Under the LLCF system any overall negative balance in a given year is carried forward to the next accounting period.  This carry forward period is limited in time (3-5 years), after which the total accumulated loss is waived.  For this type of protection, an annual stop loss charge is taken into account.  This charge is deducted from the positive balance prior to the dividend payment.  It is collected  only if the pooling results are sufficient.

Minimum Requirements:

  • Poolable group cover with network insurers in at least two countries
  • Covering at least 500 insured lives
  • Settlement of Dividends
  • Annually for groups with a minimum of 500 lives