Question

What is the primary purpose of facultative reinsurance?

Q: Answer-What is the primary purpose of facultative reinsurance?

Facultative reinsurance is used to cover individual risks, often those that are large or unusual, on a case-by-case basis. It is not part of a pre-arranged treaty between the insurer and the reinsurer.

A To cover individual, often large, risks that fall outside of a treaty agreement.

B To cover all risks within a specific class of business

C To protect against catastrophic losses across the entire portfolio

D To provide automatic coverage for all risks

E None of the above

Practice Next

More Insurance Awareness Questions

Which of the following can cause a Tsunami?
The human eyeball is composed of three layers. The correct sequence of the layers from exterior to interior is
What percentage of the project cost is provided under the TREAD scheme by the Ministry of MSME?
Which two countries share the longest International border?
Sonal Mansingh is famous for:
For how many days is the Hornbill festival held?
Shree Narayana Dharma Paripalana Yogam (SNDP), founded in 1903, to carry on the work of social reform was active in which of the following states?
Nagpur Plan classifies roads in India into how many categories?
Who is the current Chief Election Commissioner of India?
The National Botanical Research Institute is situated in which city?

What is the primary purpose of facultative reinsurance?

Solution