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The cash loss limit is a specified amount of loss if a claim exceeds then the ceding company shall have the option to call for an immediate payment from the reinsurers rather than just waiting till the end of the accounting period.
The limit beyond which immediate payments is required from reinsurers.
Whenever the amount of loss exceeding certain amount that stated in the treaty and referring to as CASH LOOS LIMIT , the reinsurers shall pay their proportionate shares immediately , while all other looses below the cash loss limit are advised and detailed in the usual quarterly accounts.
Thanking you ,
With my best wishes.
