Page 57 - Reinsurance Management IC85

The Insurance Times

i. In case of war arising between the country
in which the ceding company and the country
in which the reinsurers reside or carry on
business or are incorporated.

ii. Sudden Death Clause to provide for
termination without notice in the event of
certain other circumstances stipulated in the
contract such as insolvency of one of the
parties, failure to observe the terms of
agreement, etc.

Q. a. Define the term "loss" in an XL contract.
b. Explain with an example the operation
of the "72 hours clause".

Ans: a. The two essential features for recovery under
an XL treaty are that the ceding company
has sustained a loss covered by the
reinsurance and that this loss has exceeded
a previously agreed limit called priority or
deductible. The term 'loss occurrence' in an
XL contract means "all individual losses

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