Question

What is the difference between the risk-attaching basis and the loss-occurring basis?

The risk-attaching basis covers all claims from the ceding insurer's underlying policies incepting during the period of the reinsurance contract, while the loss-occurring basis covers claims occurring after the expiration date of the treaty.

The risk-attaching basis covers all claims occurring during the period of the treaty and the loss-occurring basis covers only claims from the ceding insurer's underlying policies incepting during the period of the reinsurance contract.

The risk-attaching basis covers claims occurring after the expiration date of the treaty, while the loss-occurring basis covers only claims from the ceding insurer's underlying policies incepting outside the period of the reinsurance treaty.

The risk-attaching basis and the loss-occurring basis are the same and cover all claims from the ceding insurer's underlying policies incepting during the period of the reinsurance contract.

Posted under IC85 Reinsurance Management

Answer: (a).The risk-attaching basis covers all claims from the ceding insurer's underlying policies incepting during the period of the reinsurance contract, while the loss-occurring basis covers claims occurring after the expiration date of the treaty. Explanation:The risk-attaching basis covers all claims from the ceding insurer's underlying policies incepting during the period of the reinsurance contract, even if such claims occur after the expiration date of the treaty agreement. On the other hand, the loss-occurring basis covers all claims occurring during the period of the treaty, irrespective of when the underlying policies incepted. However, any claim occurring after the expiration date of the treaty is not covered under both bases.

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Q. What is the difference between the risk-attaching basis and the loss-occurring basis?

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