[F009]

facultative treaty

A contract between a ceding company and a reinsurer with regard to the handling of the placement of individual risk. In a facultative treaty there is no automatic requirement to cede by the ceding company, nor is there a requirement to accept a risk by the reinsurer. Each may be negotiated individually.

Copyright: The Rough Notes Company, Inc., 1998, All Rights Reserved. 3040100

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