Chapter 4: LOSS ALLOCATION
Rapporteur: Martin Schauer / Adam Horvath
Version: 1.0, Nov. 2019
Article 4.1
(Scope of application)
This Chapter applies where the parties to the contract agree to allocate losses according to a “losses occurring” basis or “risks attaching” basis.
Article 4.2
(Losses occurring)
(1) An allocation clause referring to “losses occurring” brings within the temporal scope of the contract any obligation of the reinsured arising during the reinsurance period as a consequence of the materialization of a peril insured against under the reinsured relationship.
(2) The point in time when the obligation of the reinsured arises is to be determined pursuant to the terms and conditions of the reinsured relationship and the law applicable thereto.
Article 4.3
(Risks attaching)
An allocation clause referring to “risks attaching” brings within the temporal scope of the contract any obligation of the reinsured arising as a consequence of the materialization of a peril insured against under a reinsured relationship incepting or being renewed during the reinsurance period.