A reinsurance contract (usually proportional) under which the subject matter business must be ceded by the ceding company in accordance with the contract terms and must be accepted by the reinsurer. Also referred to as Automatic Treaty.  

A frequently used term in reinsurance referring to an incident, happening or event that triggers coverage under an occurrence-based agreement. The definition of an occurrence will vary, depending upon the intent and interests of the parties.

A provision in most property per risk reinsurance contracts that limits the reinsurer’s liability for all risks involved in one occurrence.