Claim Recovery from Facultative Business and Proportional Treaty

Non-Proportional Facultative #

If your business is covered by a non-proportional facultative protection, you must either set the indicator “Include in Recovery Calculation” or link the claim to a Headline Loss. The link to the protection is however unnecessary. The claim is automatically linked to the Non-Proportional Facultative Protection. The calculation is initiated from the Business Claim List of the Assumed Business. For further details refer to the Recovery Calculation chapter.

Proportional Facultative #

If a Proportional Facultative Protection protects your business, the system automatically creates a (technical ) worksheet on the protection for its proportionate share if the Assumed Business worksheet is transferred to ledger. If the Trace Claim parameter is set, you can see which assumed claim the worksheet is referring to. No claims are created on the retrocessionaire/facultative protection.

Proportional Treaty #

If your business is protected by a proportional OCC, except for a US Quota Share treaty, the system will automatically include all claim worksheets that are transferred to ledgers in the Retrocession Account.

When the worksheet is closed, the system creates preliminary worksheets on the OCC Business Ledger.

When you run the account from the Administration condition (A) of the OCC, the system goes through the remaining of the retrocession account process.

If you want to trace which claim is linked to which booking on the OCC and its placements (retrocessionaire), the “Trace Claims” parameter must be selected. Refer to Accounting Parameters in System Administrator’s Guide.

No claims are created automatically on the OCC, or the Retrocessionaires' Participations.

Proportional Treaty US Quota Share #

If your business is protected by a proportional OCC of type “US Quota Share” treaty, the claim worksheet bookings are not automatically reflected on the OCC’s “As Original Ledger” (as preliminary bookings). In order for the original bookings to be reflected you must create a Recovery Order for US Quota Share. Refer to Non-Proportional Recovery and Appendix in chapter 20 for further details.