What is ‘Otkrytie cover
Lid opening position in the insurance policy that reimburses the insured losses discovered during the term of the policy, regardless of when the losses actually occurred. The opening cover can be used in both insurance and reinsurance contracts and are designed to provide protection against all claims that are filed after a long period of time.
Breaking down the ‘Discovery cover
Reinsurance agreement with the opening of the cover is akin to a claims-made policy for insurers. This allows passing to the insurer to be reimbursed by the reinsurer of losses that were discovered while the contract was in force, regardless of when the loss was sustained.
When an insurance company underwrites a new policy it agrees to indemnify the insured in exchange for the award. In many cases, the policyholder immediately know what damage or loss has occurred and will submit applications on payment of insurance compensation. For example, a fire damaged building is likely to result in a claim immediately. In other cases, however, trauma can take years to develop and the insurer may not be visible for an extended period of time. Most likely, this will happen in a claims-made policy.
Insurance companies that sign requirements policies provide policyholders the ability to sue for events that occurred during, before the current policy was activated. This type of policy can make evaluating more complicated claims for the insurer. In order to limit its exposure to risk, the older the event, in which a new claim, the insurer may conclude a contract of reinsurance with the opening of the cover.
Other users opening the lid
In addition to being used by insurers, the cover is opened and used by companies that went through mergers, was acquired, or went bankrupt. The Corporation may have lawsuits filed against them by ex-employees, shareholders, or other groups who believe that the former leadership committed fraud against them or were guilty of negligence. In this case, the opening cover is designed to protect the company from any wrongful acts committed by these leaders. These wrongful facts may include dishonesty, forgery, computer fraud, fraud transfer of funds, money and securities coverage, and transmission of payment orders and counterfeit money. When you open the lid, it doesn’t matter when the loss is only that you have insurance at the time of opening. However, the opening cover may include a return date, limiting the scope of the historical coverage.