The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

FACULTATIVE OBLIGATORY TREATY Definition & Legal Meaning

Definition & Citations:

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.

Disclaimer

This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.