Reinsurance on a case-by-case or individually tailored basis.

The reinsuring of a part or all of a risk provided by a single policy. The original insurer offers the risk to be reinsured and the reinsurer has the option to accept or reject the individual risk.

A type of reinsurance that allows a reinsurer to accept or reject any risk that is presented to them by an insurance company. Also see automatic reinsurance.

Reinsurance of individual risks by offer and acceptance wherein the REINSURER retains the "faculty" to accept or reject each risk offered by the CEDING COMPANY. Also SPECIFIC REINSURANCE.

Facultative reinsurance is coverage where a Reinsurer evaluates a specific risk on a case-by-case basis. The primary insurer has no obligation to submit any risks to the reinsurer, and the reinsurer is free to accept or reject any risks submitted by the primary insurer or ceding company. Facultative reinsurance can be in the form of either Pro Rata or Excess of Loss coverage.

Reinsurance on an individual policy basis wherein each risk which an insurance company wishes to reinsure is reviewed by the reinsurer, which has the "faculty" or option to accept or decline all or part of each risk offered to it.

The reinsurance of a specifically identifiable risk by a cedant on terms and conditions agreed upon by the reinsurer specifically for that risk.

Reinsurance effected item by item and accepted or declined by the reinsuring company after scrutiny, as opposed to reinsurance effected by treaty. The work facultative connotes that both the primary insurer and the reinsurer have the faculty or option of accepting or rejecting the individual submission, as distinguished from the pre-set obligation to cede and accept already agreed upon by the parties in treaty reinsurance.

A type of reinsurance agreement that allows (1) a ceding company to choose whether to ask a reinsurer to consider coverage on a risk, (2) the reinsurer to choose whether it wishes to participate in the risk, and (3) the ceding company to choose whether to accept the reinsurer's offer on the risk, if an offer is made. Contrast with automatic reinsurance.

An individual reinsurance negotiated and placed individually.

Reinsurance of a single risk.

Refers to individual risks offered by an Insurer to a Reinsurer. Each party is free to negotiate terms as they wish.

The reinsurance of risks that the original insurer may elect whether or not to offer for reinsurance, the reinsurer being free to accept or reject the offer.

Reinsurance by offer and acceptance of individual risks, wherein the reinsurer retains the "faculty" to accept or reject each risk offered by the ceding company. Contrast with Treaty Reinsurance.

A procedure by which insurance companies reinsure risks on an individual basis, with the reinsurer having the option to accept or decline each risk.

A type of reinsurance in which the reinsurer can accept or reject any risk presented by an insurance company seeking reinsurance.

A reinsurance policy that provides an insurer with coverage for specific individual risks that are unusual or so large that they aren't covered in the insurance company's reinsurance treaties. This can include policies for jumbo jets or oil rigs. Reinsurers have no obligation to take on facultative reinsurance, but can assess each risk individually. By contrast, under treaty reinsurance, the reinsurer agrees to assume a certain percentage of entire classes of business, such as various kinds of auto, up to preset limits.

Reinsurance that is made available on an individual risk basis by the reinsurer who has the faculty to accept or reject all or part of a risk for which an insurance company is seeking reinsurance coverage.

Reinsurance negotiated on an individual issue-by-issue basis rather than on a treaty basis.

the placement of REINSURANCE on a risk-by-risk basis.