Nonproportional Facultative Reinsurance

Definition of "Nonproportional facultative reinsurance"

M.J. Clay real estate agent
M.J. Clay, Real Estate Agent Carod Properties

Coverage in which an insurer is not bound to cede and a reinsurer is not bound to accept a risk. A separate reinsurance contract covers each cession. The contract is automatically renewed if the original insurance is renewed. Casualty facultative reinsurance is usually written on excess of loss basis, and the reinsurer shares only in losses which exceed retention level of the cedent.

Have a question or comment?
We're here to help.

*** Your email address will remain confidential.


Popular Insurance Terms

Popular Insurance Questions