A change in the nature or character of cargo, vessel or other property (e.g. bicycle crushed by steamroller) so that it is no longer the type of property that was insured. See ACTUAL TOTAL LOSS.
***
There is said to be loss of specie when property the subject of insurance is so damaged that it ceases to be a thing of the kind insured, as where a motor cycle is crushed or clothes are burnt to ashes.

Inability to use property, e.g. a motor car, during period of repair or replacement. Some insurers provide temporary replacement cars under comprehensive policies. Otherwise the loss, which is consequential, is not covered under material damage insurance and this is often reinforced by a loss of use exclusion. ‘Loss of use’ may be claimed against a negligent third party. Under houshehold policies the cost of alternative accommodation is covered when the property cannot be occupied following insured damage. See LOSS OF USE (AVIATION).

An insurance to safeguard an aircraft owner against loss of earning capacity when the aircraft is laid-up for repair following an accident. The benefit is as an amount per day subject to a time excess. Cover operates only when a claim is admitted under the hull policy.

UK: an amount payable by a reinsurer to a cedant in consideration of the release of the reinsurer from all or part of the liability arising under a reinsurance contract in respect of claims incurred prior to a specified date (see also outstanding claims portfolio and premium portfolio).
***
REINSURANCE,REFERENCE: See: Loss Portfolio Transfer.
***
UK: The liability of an insurer for the unexpired portion of the in-force policies or outstanding losses or both for a specified segment of the insurer’s business for which reserves have been made. See LOSS PORTFOLIO TRANSFER; LOSS PORTFOLIO ENTRY; LOSS PORTFOLIO WITHDRAWAL.

A reinsurer may accept, at inception or renewal of a treaty, responsibility for the cedant’s loss portfolio from the previous year(s). The reinsurer thus pays losses for a contractually defined set of earlier losses in return for the unearned premium.

a type of reinsurance whereby a reinsurer agrees to indemnify the cedant for all claims outstanding in a particular type or class of business, or the totality of the insurer’s business.

Transfer of loss portfolio in respect of claims on the cedant’s future business. The terms are adjustable according to the volume of business. The reinsurance recoveries follow the loss pattern of the cedant. The effect is to transfer liabilities to the balance sheet of the reinsurer in return for a premium reflecting the time value of money with the timing and investment risks being assumed by the reinsurer. The cedant replaces unknown liabilities with a known cost and this helps clean up the balance sheet especially if a merger or acquisition is involved. It is an alternative risk transfer product.

Transfer of incurred losses (loss portfolio) from an insurer to a reinsurer who receives a premium based on the net present value of losses, loaded for profit, expenses and timing. The reinsurer invests the premium over the time taken to settle the claims. Transfers allow an insurer to improve financial ratios or exit a line business. It is a finite risk solution. See LOSS PORTFOLIO ENTRY.

At the end of a reinsurance period, or at the cancellation of a reinsurance contract, the reinsurer can be relieved of responsibility for claims outstanding at that time by paying the cedant a proportion (e.g. 90 per cent) of the outstanding claims.