A reinsurance contract that is entered into on a case-by-case basis after an application for insurance is received by a primary insurer is called
A)a reinsurance pool.
B)automatic treaty reinsurance.
C)retrocession.
D)facultative reinsurance.

Question

Quizplus · Accepted Answer

Facultative reinsurance is entered into on a case-by-case basis after an application for insurance is received by a primary insurer. It provides coverage for individual risks that exceed the primary insurer's retention limit or for risks that are outside the scope of their automatic treaty reinsurance. The other options listed are different types of reinsurance arrangements, but do not match the description of facultative reinsurance.

A Reinsurance Contract That Is Entered into on a Case-By-Case