What is FACULTATIVE OBLIGATORY TREATY?

A hybrid of FACULTATIVE REINSURANCE and TREATY REINSURANCE where the CEDING INSURER can choose to assign certain RISKS to the REINSURER, who is then required to accept them.

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Related Legal Terms
FACULTATIVE, TREATY REINSURANCE, FACULTATIVE REINSURANCE, TREATY FACILITY, EXTRADITION TREATY, TREATY, PATENT COOPERATION TREATY (PCT), NORTH ATLANTIC TREATY ORGANIZATION (NATO), SECOND SURPLUS REINSURANCE, FINITE QUOTA SHARE


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