Question

What is loss-occurring basis?

a.

A basis under which reinsurance is provided for all claims from the ceding insurer`s underlying policies incepting during the period of the reinsurance contract

b.

A basis under which all claims occurring during the period of the treaty, irrespective of when the underlying policies incepted, are covered

c.

A basis under which the reinsurer only covers specific types of risks

d.

A basis under which the reinsurer only covers risks in a specific geographic area

Answer: (b).A basis under which all claims occurring during the period of the treaty, irrespective of when the underlying policies incepted, are covered Explanation:A loss-occurring basis can be described as a basis under which all claims occurring during the period of the treaty, irrespective of when the underlying policies incepted, are covered.

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Q. What is loss-occurring basis?

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