No New Laser

In stop loss insurance, a laser is when the carrier assigns a higher specific deductible to a particular individual based on known or expected high claims.

Example:

• Standard specific deductible: $100,000
• Carrier applies a $300,000 laser to one employee

That individual must exceed $300,000 before reimbursement begins, while everyone else remains at $100,000.

A No New Laser endorsement typically guarantees that at renewal:

• The carrier will not add new lasers to individuals who were not previously lasered.

Depending on the endorsement wording, it may also:

• Limit increases to existing lasers
• Cap the amount of any laser adjustment

But the most common structure simply prohibits adding new individual lasers.

A No New Laser endorsement does not:

• Eliminate existing lasers
• Guarantee no rate increase
• Prevent overall premium adjustments
• Guarantee renewal (unless paired with a rate cap or renewal guarantee)

It specifically addresses individual deductible changes, not overall pricing.

Because the endorsement removes an underwriting tool, carriers typically:

• Charge additional premium
• Apply tighter underwriting at initial issue
• Require higher minimum specific deductibles
• Limit availability to certain group sizes