Insurance Awareness - Reinsurance
Which of the following is a key advantage of facultative reinsurance for the ceding insurer?
Which of the following is a key advantage of facultative reinsurance for the ceding insurer?
easy Q3 of 15
Step-by-Step Solution
Step 1: Understand benefits of facultative reinsurance
Facultative reinsurance allows the ceding insurer to selectively cede risks, providing flexibility.Final Answer:
Flexibility to cede only selected risks → Option DQuick Check:
Flexibility to cede only = correct choice ✅
Quick Trick: Facultative = selective risk ceding.
Common Mistakes:
MISTAKES- Believing facultative guarantees acceptance or lower premiums.
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