Question 1

What does a table of lines specify?

Accepted Answer

Maximum acceptance limits per risk, graded by class or quality, expressed as multiples of the cedent's retention — A table of lines grades the treaty's maximum cession — its capacity in "lines" of retention — by class or quality of risk, rather than applying one uniform limit to everything.

Question 2

What happens when a risk needs more cession than the table of lines allows for its class?

Accepted Answer

The excess above the table's limit must be placed elsewhere, typically facultatively — A risk exceeding its class's cession limit cannot be forced into the treaty — the amount above the table's limit needs a separate placement, usually facultative reinsurance.

Cession Limit (Table of Lines)

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