In health insurance, a stop loss policy is a policy that takes effect after a certain amount has been paid in claims. Companies providing health insurance for their employees through a self-insured plan often subscribe to stop loss policies in order to protect themselves against catastrophic claims. The Organisation which takes the insurance policy is called Insured and the employees and other people who are covered the policy are called Participants. Most of the time there is a Annual Limit for Stop Loss Amount for each Participant and Aggregate Amount for each Policy year. The premium is calculated for each employee for each month. The premium is based on the number of participants, age of the participants and various other information.