Insurance Awareness - Reinsurance
In facultative reinsurance, the reinsurer’s acceptance or rejection of a risk is based on:
In facultative reinsurance, the reinsurer’s acceptance or rejection of a risk is based on:
medium Q4 of 15
Step-by-Step Solution
Step 1: Identify basis of reinsurer’s decision in facultative reinsurance
The reinsurer evaluates each risk individually through underwriting before acceptance or rejection.Final Answer:
Individual underwriting and assessment of the specific risk → Option BQuick Check:
Individual underwriting and assessment = correct answer ✅
Quick Trick: Facultative = case-by-case underwriting.
Common Mistakes:
MISTAKES- Confusing facultative with treaty or assuming forced acceptance.
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