What Does “Written as Such” Really Mean? (IRMI)

Reinsurance contracts often contain coverage grants and exclusions that set forth the specific classes of business or risk exposures covered or not intended to be protected or reinsured. A property treaty generally is not intended to cover losses arising from casualty risks. A lawyers professional liability excess-of-loss treaty most certainly is not intended to assume losses arising out of automobile accidents. A broad property and casualty quota share treaty covering commercial general liability (CGL) policies may not be intended to cover risks typically covered by stand-alone specific earthquake or flood policies. Typically, broad-based reinsurance contracts will contain specific coverage grants and also a list of exclusions specifying the lines of business or specific perils that are not intended to come within the contracts.