facultative reinsurance

noun
fa·​cul·​ta·​tive reinsurance | \ ˈfa-kəl-ˌtā-tiv- \

Legal Definition of facultative reinsurance

: a separate reinsurance agreement drawn up for a single risk — compare treaty reinsurance

History and Etymology for facultative reinsurance

alluding to the faculty (i.e., power or prerogative) of the reinsurer to accept or reject the agreement

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Cite this Entry

“Facultative reinsurance.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/facultative%20reinsurance. Accessed 18 Sep. 2020.

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