Page 35 - Reinsurance Management IC85

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b. Losses occurring basis:
Excess of Loss Reinsurance is normally for a
period of one year, say 1st Jan. to 31st Dec. All
losses occurring during this specified period will
be covered by the policy even though the loss may
arise in a policy which had been incepted prior to
the date of commencement of excess of loss
cover.

This basis is known as "Losses Occurring Basis"
i.e., all losses during the specified period will be
paid for.

Policy attaching basis (or underwriting year
basis) :
In this form, irrespective of their dates of
occurrence, losses under policies issued by the
ceding company during the contract period, say 1st
Jan to 31st Dec will fall within the scope of the
treaty. Thus, even when the XL cover ceases on
31st Dec, the cover will provide protection to risks
which have attached during the period of XL cover.

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