Introduction to Reinsurance.pdf - Prince Lobel
Introduction to Reinsurance.pdf - Prince Lobel
Introduction to Reinsurance.pdf - Prince Lobel
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The Two Main Types of<br />
<strong>Reinsurance</strong><br />
“FACULTATIVE” REINSURANCE<br />
<strong>Reinsurance</strong> transacted on an individual risk basis.<br />
The ceding company has the option <strong>to</strong> offer an<br />
individual risk <strong>to</strong> the reinsurer and the reinsurer retains<br />
the right <strong>to</strong> accept or reject the risk.<br />
“TREATY” REINSURANCE<br />
A transaction encompassing a block of the ceding<br />
company’s book of business. The reinsurer must<br />
accept all business included within the terms of the<br />
reinsurance contract.