Under an excess policy, the insured may be required to show an ultimate net loss sufficiently large to exceed the excess point and to penetrate the excess layer. Alternatively, as in this case, there may be no obligation to pay unless and until lower layers had been exhausted, in which event the layer will drop down to replace the exhausted cover beneath it (“top and drop” approach). The court considered the preliminary issue of how to determine whether the excess point that triggered the reinsurance cover had been reached and found in favour of the reinsurers (Teal Assurance Co Ltd v W R Berkley Insurance (Europe) Ltd www.bailii.org/ew/cases/EWHC/Comm/2011/91.html).