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The Insurance Times

Q.1. Elaborate :
a) Hours clause
b) Bouquet of treaties
c) From Ground Up (FGU)
d) Bordereaux

Ans. a) Hours Clause
The colloquial term which limits the time period
during which claims resulting from a given
occurrence may be included as part of the loss
subject to the cover. The time period is usually
measured in consecutive hours and most often
applies to property reinsurance, e.g., a
windstorm, conflagration, or earthquake, and less
frequently in occupational disease and other
aspects of casualty.

b) Bouquet of treaties
A collection of treaty contracts offered by a ceding
company to reinsurers as a package. Reinsurers
are required to accept the same share of each
reinsurance contract which forms the bouquet.
An array of linked treaty layers written on a
package basis.

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