How Reinsurance Management attaches agreements to policies

With Reinsurance Management, PolicyCenter attaches reinsurance agreements to policies to provide reinsurance coverage. The date that the reinsurance agreement attaches, and how long the agreement provides coverage is based on whether the agreement is a policy attachment or loss date attachment agreement.

Policy attachment agreements – Policy attachment treaties apply to all losses against the policy for the entire term.
All proportional agreements and all facultative agreements attach to the policy.
Loss date attachment agreements – These treaties apply to the policy at the loss date, rather than the policy effective date. In these agreements, PolicyCenter chooses the agreement that is in effect on the loss date rather than the start date of the policy.

In the following table, the marked cells indicate the agreement type.

Agreement	Policy Attachment	Loss Date Attachment
Non-proportional treaties
Annual Aggregate Treaty		•
Per Event Treaty		•
Excess of Loss Treaty	•	•
Net Excess of Loss Treaty	•	•
Non-proportional facultative agreements
Facultative Excess of Loss	•
Facultative Net Excess of Loss	•
Proportional treaties
Quota Share	•
Surplus	•
Proportional facultative agreements
Facultative Proportional	•

Excess of loss and net excess of loss treaties can be specified as either policy attachment or loss date attachment. You set this in the Loss Attachment Basis field on the Treaty screen.

In a multicurrency system, PolicyCenter attaches a reinsurance agreement that has the same currency as TIV/SI of the risk.