Monthly Aggregate Accommodation

This endorsement allows the carrier to:

• Compare year-to-date actual claims to a year-to-date adjusted aggregate attachment point.
• Issue partial reimbursement during the year if claims exceed that adjusted threshold.
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It smooths cash flow instead of forcing the employer to wait until year-end.

At the start of the policy year:

• Expected annual claims are calculated.
• An aggregate attachment point is established (e.g., 125% of expected claims).
• That annual attachment point is broken into monthly increments using a monthly aggregate factor schedule.

Example:

• Expected annual claims: $1,200,000
• Aggregate corridor: 125%
• Annual attachment point: $1,500,000

If evenly distributed, the monthly expected claims would be $100,000 per month, and the running aggregate threshold would grow monthly.

Mid Year:

• Expected claims YTD: $600,000
• Running aggregate attachment (125%): $750,000
• Actual claims YTD: $820,000
• Excess: $70,000

With a Monthly Aggregate Accommodation endorsement:

• Carrier may reimburse the $70,000 during the policy year.
• The employer avoids carrying that overage for six more months.

Without the endorsement, the employer would wait until year-end to determine total reimbursement.

Because this endorsement accelerates payments, carriers often include:

• A minimum margin above the running threshold before payment triggers
• Strict monthly reporting requirements
• Enrollment stability requirements
• A minimum aggregate attachment point

It protects the carrier from over-advancing funds too early.

This endorsement provides:

• Improved cash flow stability
• Reduced need for large claim reserves
• Less year-end financial shock
• Better budgeting predictability

It does not change the final aggregate attachment point — it only changes when reimbursement occurs.