Initial Recognition begin (QS & XoL)
What is the difference between underlying contracts begin and reinsurance coverage begin?
It looks like you're new here. If you want to get involved, click one of these buttons!
What is the difference between underlying contracts begin and reinsurance coverage begin?
Comments
Your XOL reinsurance coverage can begin on January 1 covering contracts with loss occurring in that AY. However, all your underlying contracts that are covered by the reinsurance could have a coverage that begins only on February 1 of that year. In other words, your coverage period for the reinsurance contracts and underlying insurance contracts do not have to necessarily line up