What does Claims Made Basis mean? Read on to discover the definition & meaning of the term Claims Made Basis - to help you better understand the language used in insurance policies.
Claims Made Basis
A form of reinsurance under which the date of the claim report is deemed to be the date of the loss event. Claims reported during the term of the reinsurance agreement are therefore covered, regardless of when they occurred. A claims-made agreement is said to "cut off the tail" on liability business by not covering claims reported after the term of the reinsurance agreement unless extended by special agreement.
We hope the you have a better understanding of the meaning of Claims Made Basis.