Contract Definition Language Semantics
Contracts in the Risk Data Object (RDOS) are defined using Contract Definition Language (CDL). CDL is a domain-specific natural language for transparently and unambiguously defining how much a contract pays out given a set of discrete claims. For purposes of CDL semantics, claims are equal to losses from events on dates in a simulation period. CDL applies one period at a time, and the semantics define how CDL handles each dated event within that period.
CDL is not responsible for forming the claims. Insurance contracts typically take losses to exposures as defined by some model. Reinsurance contracts typically take losses to higher-level positions such as portfolios and groups of portfolios. Structure Definition Language (SDL) defines how losses can be combined and processed prior to the application of any reinsurance.
The following topics provide additional information about CDL semantics:
- High-level flow, including order of operations
- Covers—attachment, payout, and share
- Terms—sublimits and deductibles
- Special topics—amounts, time basis, sections, cover subject, and other inputs
Read next: CDL High-Level Flow