Problems at Lloyd’s
"losses occurring versus claims made"
- When a loss occurs, who pays? Suppose I bind a coverage today, a loss event (like pollution) occurs tomorrow, and a claim is made 40 years from now when the insurers are different.
- Who pays? The insurer when the loss occurred, or the insurer when the claim is made? Obviously insurers 40 years ago couldn't contemplate some of the risks that are involved today, and certainly couldn't envision the rulings of the courts.