facultative reinsurance

facultative reinsurance
A form of reinsurance in which the terms, conditions, and reinsurance premium is individually negotiated between the insurer and the reinsurer. There is no obligation on the reinsurer to accept the risk or on the insurer to reinsure it if it is not considered necessary. The main differences between facultative reinsurance and coinsurance is that the policyholder has no indication that reinsurance has been arranged. In coinsurance, the coinsurers and the proportion of the risk they are covering are shown on the policy schedule. Also, coinsurance involves the splitting of the premium charged to the policyholder between the coinsurers, whereas the reinsurers charge entirely separate reinsurance premiums.

Big dictionary of business and management. 2014.

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  • facultative reinsurance — fa·cul·ta·tive reinsurance / fa kəl ˌtā tiv / n [alluding to the faculty (i.e., power or prerogative) of the reinsurer to accept or reject the agreement]: a separate reinsurance agreement drawn up for a single risk compare treaty reinsurance… …   Law dictionary

  • facultative reinsurance — noun : a separate reinsurance agreement drawn up for a single risk …   Useful english dictionary

  • facultative reinsurance — /faekalteytav riyanshurans/ Under type designated facultative , the reinsurer has the option of accepting the tendered part of the original insurer s risk. Lincoln Nat. Life Ins. Co. v. State Tax Commission, 196 Miss. 82, 16 So.2d 369 …   Black's law dictionary

  • facultative reinsurance — /faekalteytav riyanshurans/ Under type designated facultative , the reinsurer has the option of accepting the tendered part of the original insurer s risk. Lincoln Nat. Life Ins. Co. v. State Tax Commission, 196 Miss. 82, 16 So.2d 369 …   Black's law dictionary

  • Reinsurance — is a means by which an insurance company can protect itself against the risk of losses with other insurance companies. Individuals and corporations obtain insurance policies to provide protection for various risks (hurricanes, earthquakes,… …   Wikipedia

  • reinsurance — The passing of all or part of an insurance risk that has been covered by an insurer to another insurer in return for a premium. The contract between the parties is usually known as a reinsurance treaty. The policyholder is usually not aware that… …   Big dictionary of business and management

  • treaty reinsurance — n: reinsurance under a general agreement that automatically reinsures in accordance with its terms all risks of a given class to a predetermined extent as soon as they are insured by the direct underwriter compare facultative reinsurance Merriam… …   Law dictionary

  • International Credit Insurance & Surety Association — Infobox Company name = International Credit Insurance Surety Association (ICISA) type = Association genre = foundation = 2001 renamed to (ICISA) founder = location city = location country = location = locations = area served = Worldwide key… …   Wikipedia

  • insurance — /in shoor euhns, sherr /, n. 1. the act, system, or business of insuring property, life, one s person, etc., against loss or harm arising in specified contingencies, as fire, accident, death, disablement, or the like, in consideration of a… …   Universalium

  • Fairfax Financial — Infobox Company company name = Fairfax Financial Holdings Limited company company type = Public: (TSX|FFH, NYSE|FFH) industry = insurance foundation = 1985 location = Toronto, Ontario, Canada key people = Prem Watsa, chairman and chief executive… …   Wikipedia

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