Facultative definition

Facultative means the reinsurance of a part or all of a single policy in which cession is negotiated separately and that the reinsurer and the insurer have the option of accepting or declining each individual submission;
View Source
Facultative according to the dictionary means the “right of option” as opposed to “obligation”. It is used in marine insurance practice in regard to a proposal for insurance where the insurer has the option to accept or reject the proposal by the assured. Generally, the term “facultative” is applied to the effect of a specified insurance, sometimes called a “named risk”, wherein the name of the carrying vessel, the goods to be insured and the voyage are all clearly defined in the insurance contract.
View Source
Facultative means able to exist under more than one set of environmental conditions (Collins Concise English Dictionary, Third Edition, 1992)
View Source

Examples of Facultative in a sentence

  • Auto/Fac Indicator Indicates whether the policy is ceded on an Automatic or Facultative basis.

  • Automatic and Facultative business will be identified separately.

  • After consideration of the Application for Facultative Reinsurance and related information, the Reinsurer will promptly inform the Ceding Company of its underwriting decision.

  • In addition, the Reinsurer may choose to provide Facultative Obligatory capacity greater than as specified in Schedule B.

  • Premiums and allowances will be summarized for Life coverages, Benefits, and Riders by the following categories: Automatic and Facultative, First Year and Renewals.

  • The Ceding Company will apply for reinsurance on a facultative basis by sending to the Reinsurer an Application for Facultative Reinsurance, providing information similar to the example outlined in Exhibit F - Application for Facultative Reinsurance.

  • After termination, the Reinsurer shall be liable for all Automatic and Facultative Reinsurance that has an application date on or before the effective date of the termination.

  • After termination, the terminating parties shall remain liable under the terms of this Agreement for all Automatic and Facultative Reinsurance that becomes effective prior to termination of this Agreement.

  • The Reinsurer will have a reasonable amount of time, but not to exceed two (2) business days, to respond to the Ceding Company's request for a Facultative Obligatory risk.

  • The ceded risk is subject to the Facultative Obligatory Automatic Binding Limits and the Facultative Obligatory Automatic Issue Limits, as stated in Exhibit II.

Related to Facultative

  • Reinsurance means the activity consisting in accepting risks ceded by an insurance undertaking or by another reinsurance undertaking or, in the case of the association of underwriters known as Lloyd's, the activity consisting in accepting risks, ceded by any member of Lloyd's, by an insurance or reinsurance undertaking other than the association of underwriters known as Lloyd's;

  • Formulary means a list of covered prescription drugs provided under this plan. The formulary includes generic, preferred brand name, non-preferred brand name, and specialty prescription drugs.

  • Reinsurers shall be understood to mean “Reinsurers”, “Underwriters” or whatever other term is used in the attached reinsurance document to designate the reinsurer or reinsurers.

  • Alternative modes of instruction means modes of pupil instruction, other than in-person instruction, that may include, without limitation, partnerships with other districts or intermediate districts or community colleges or institutions of higher education, use of vendors, use of online learning, telephone communications, email, virtual instruction, videos, slideshows, project-based learning, use of instructional packets, or a hybrid of multiple modes of learning that still promote recommended practices for social distancing to mitigate the spread of COVID-CD.

  • Credit insurance means both credit life and credit accident and health insurance.