Question

How are fidelity losses treated in excess of loss reinsurances?

a.

Each act of embezzlement is considered a separate occurrence

b.

Losses are aggregated based on the number of individuals involved

c.

Losses are aggregated based on the time of discovery

d.

Each policy period is considered a separate occurrence

Answer: (a).Each act of embezzlement is considered a separate occurrence Explanation:In excess of loss reinsurances for fidelity losses, each act of embezzlement is typically considered a separate occurrence. This means that independent acts of embezzlement would be regarded as separate losses for the purpose of reinsurance, even if they occur within the same policy period or involve multiple individuals.

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Q. How are fidelity losses treated in excess of loss reinsurances?

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