The loss occurrence limit refers to the maximum amount payable to the cedant for any one loss causing incident. The incident may cause one loss, multiple losses, or a series of losses. The effect of this clause is to cap the amount payable under the reinsurance contract to the maximum amount stipulated in the reinsurance slip.
Most often, reinsurers do not insert a separate clause to show the loss occurrence cap. The slip may be written as follows: USDXX amount any one loss occurrence, as opposed to just “any one loss”. There is a very big difference between these two versions. Watch out for this one!
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