second surplus

  • A form of treaty required by companies engaged in business requiring large policies, e.g., industrial risks, providing for the lines that are too large to be embraced in a first surplus treaty. It follows on the plan of first surplus but obviously provides only a much diminished spread of risks to the reinsurers.

    Internal Revenue Service 1
    See also treaty

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).