Minimum Facultative Submission Sample Clauses

The Minimum Facultative Submission clause establishes the lowest threshold of risk or business that must be offered to a reinsurer on a facultative basis. In practice, this means that the ceding insurer is required to submit only those risks that meet or exceed a specified minimum value or criteria, rather than every potential risk. This clause ensures that both parties are clear on which risks are eligible for facultative reinsurance, streamlining the submission process and preventing unnecessary administrative work for smaller or less significant risks.