The provision in a reinsurance contract that designates that the losses to which the reinsurance applies are those losses that actually happen during the term of the reinsurance even if the original policies that cover the losses are issued (as new or renewal policies) prior to the inception of the reinsurance contract. (See also Policies Attaching.)
Insurance Encyclopedia
Losses Occurring During Basis
Excess of loss contracts are generally arranged for a period of one year, say from 1st January to 31st December. If any loss occurs during the specified period, it will fall within the scope of the contract though the policies under which such losses arise may have incepted prior t the date of commencement of excess of loss cover. The Ceding Company would normally arrange for the renewal of the contract to ensure continued protection for the run-off portfolio and for new risks attaching during the next annual period.
Losses Occurring Policy
As opposed to claims-made policy or a risk attaching policy. Insurance cover is provided for losses occurring in the defined period.
Losses occurring reinsurance
Covers losses occurring during the period of the treaty regardless of the date of the claim. The reinsurer’s liability is triggered by an occurrence within the treaty period even though the underlying policy may have been incepted before the treaty commenced as in long-tail claims. Compare with claims-made reinsurance and risks attaching.
Losses Outstanding
REINSURANCE: Losses (reported or not reported) which have occurred but have not been paid.
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The amount of loss for which the Insurer is liable and which it expects to pay in the future.
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The claims not yet settled by an insurer, expressed in a summary statement.
Losses Paid
Tabulation of claims that have been paid. The amount of loss for which money has been disbursed by the Insurer.
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REINSURANCE: The amount paid by reinsurer to the cedant company on account of losses incurred.
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The claims that have been paid.
Losses-occurring policies
See: Occurrence; Liability Sequence; Occurrence Trigger Theories; Triple Trigger Theory.
Lost claim
Insurance claim that cannot be located after sending it to an insurer.
Lost Instrument Bond
When the owner of a stock certificate loses, if the insurer of the certificate will not issue a duplicate until the owner furnishes an indemnity bond guaranteeing that if he finds the original he will turn it over the surety company.
Lost or Not Lost Clause
A clause of Ocean marine Insurance by which goods are insured by the Insurers no matter whether the same are already lost or not lost before the Policy is issued. (ii) Coverage of a ship at sea “afloat or sunk.” The reason for such a clause is that many times the owners of cargoes or ships would insure them after the ship had left the port, and prior to modern methods of communication, there was no way of knowing whether or not the venture had been lost at the time the insurance was taken out.