Facultative Reinsurance
Definition of "Facultative reinsurance"
Individual risk offered by an insurer for acceptance or rejection by a reinsurer. Both parties are free to act in their own best interests regardless of any prior contractual arrangements. With proportional facultative reinsurance, the reinsurer assumes a proportional share of premiums and losses. On a nonproportional basis, the reinsurer is liable only for losses which exceed the insurer's retention level; premiums vary with loss expectation.
Popular Insurance Terms
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Decision by a court of law. ...
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Period of time of insurance coverage. If a loss occurs during this time, insurance benefits are paid. If a loss occurs after this time period has expired, no insurance benefits are paid. ...
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