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What is facultative reinsurance?
  • a)
    A type of treaty reinsurance.
  • b)
    A form of surplus share treaty.
  • c)
    An optional, case-by-case method of reinsurance.
  • d)
    A reinsurance arrangement for catastrophic losses.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What is facultative reinsurance?a)A type of treaty reinsurance.b)A for...
Facultative reinsurance is an optional, case-by-case method of reinsurance. It is used when the ceding insurer receives an application for insurance that exceeds its retention limit. Unlike treaty reinsurance, which covers a broad portfolio of policies, facultative reinsurance is arranged for individual cases as needed.
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What is facultative reinsurance?a)A type of treaty reinsurance.b)A form of surplus share treaty.c)An optional, case-by-case method of reinsurance.d)A reinsurance arrangement for catastrophic losses.Correct answer is option 'C'. Can you explain this answer?
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