Cover Basis

The Cover Basis “Net After Proportional Protections” on the Limit condition of a Non-Proportional Treaty indicates that the treaty is covering the retention of a quota share. The Cover Basis percentage indicates the retained percentage. The From Ground Up calculation will take both these into consideration when registered.

Cover Amount on Limit /Cover Basis % = Cover Amount applied in FGU
Excess Amount on Limit/Cover Basis % = Excess amount applied in FGU
Annual Aggregate Deductible Amount on Limit/Cover Basis % = Annual Aggregate Deductible Amount applied in FGU
Franchise Deductible Amount on Limit / Cover Basis % = Franchise Deductible Amount applied in FGU.
Event Limit Amount on Limit/ Cover Basis % = Event Limit Amount applied in FGU

Example:

Limit recorded 950,000 xs 95,000
Cover basis %: 95
Limit applied in FGU 1,000,000 xs 100,000

Note! When Claim Limits have been recorded on the Claim these will NOT be converted.