In reinsurance contracts, cut off is a contract endpoint rule that separates in-period liability from post-endpoint exposure.
Underwriting mechanics
The contract period and trigger language define what “after cut off” means. Treaty schedules often require precise dates and notice procedures so both parties know where responsibility ends.
Claims logic
Claims teams inspect the event date, policy period, and notification timing. If the governing event occurred before the cut off date, the claim usually remains in scope; if after, that section may be outside reinsurance coverage.
Regulatory and operational impact
Clear cut off wording reduces disputes, supports reserving accuracy, and helps supervisors evaluate whether risk transfer is properly documented.
Practical example
A claim notification arrives late after contract termination, but the insured loss happened before the cut off date. Liability determination hinges on the event date and any run-off clause language.