jumbo risk

A jumbo risk refers to an insurance risk that exceeds an insurer's normal practices, such as underwriting, retention, or automatic reinsurance limits, because of the large amount of insurance in force, applied for, or otherwise exposed on a single insured or account. In life insurance, the term commonly refers to a proposed insured whose total coverage from all insurers, including pending applications, exceeds an insurer's jumbo limit. Jumbo risks usually require additional attention from the insurer's financial and medical underwriting, special approvals, and coordination with reinsurers before coverage can be issued.