Insurance Awareness - Reinsurance
Which of the following is NOT a typical feature of facultative reinsurance?
Which of the following is NOT a typical feature of facultative reinsurance?
medium Q15 of 15
Step-by-Step Solution
Step 1: Review features of facultative reinsurance
Facultative reinsurance is selective, flexible, and used for large or unusual risks, but it does not provide automatic coverage.Final Answer:
Automatic coverage of all risks under a treaty agreement → Option BQuick Check:
Automatic coverage of all risks under a treaty agreement describes treaty reinsurance, not facultative, making it the correct choice for NOT a feature.
Quick Trick: Facultative = no automatic acceptance; treaty = automatic acceptance.
Common Mistakes:
MISTAKES- Confusing facultative features with treaty reinsurance characteristics.
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