Facultative automatic

{
  "id": "MLC-T-INS-001444",
  "term": "Facultative automatic",
  "field": "Insurance and risk management",
  "definition": "A hybrid form of reinsurance where the ceding insurer has the option to offer individual risks to the reinsurer, but if offered, the reinsurer is obligated to accept them up to a pre-agreed limit. This arrangement combines the flexibility of facultative reinsurance with some of the efficiency of treaty reinsurance. It is used for specific types of risks.",
  "url": "https://mlchart.com/terminology/insurance/facultative-automatic/"
}