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Automatic, Facultative, Facultative Obligatory Introduction

Automatic, Facultative, Facultative Obligatory Introduction

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3. A type of reinsurance in which the reinsurer makes an underwriting decision, to<br />

accept or decline, on each risk sent by the ceding company is known as:<br />

a. automatic reinsurance<br />

b. facultative reinsurance<br />

c. fac ob reinsurance<br />

NOTES<br />

American Council of Life Insurers, Life Reinsurance Treaty Sourcebook, 2 nd Printing,<br />

2008

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