what is facultative reinsurance?
Wednesday, March 10th, 2010
Faculative Reinsurance is an insurance industry term: For risks on particular cases that the primary insurer does not want to ‘carry’ — that primary insurance company can ’shop it’ at OTHER, secondary insurance companies who DO want to accept this particular risk.
This second insurance company is the Reinsurance provider.
Consumer BENEFITS of a Life Insurance policy that has been ‘placed’ using Reinsurance is that, for a ’special risk’ (not best health class) applicant, this person can get a GOOD offer from the primary insurer (otherwise, the good, but picky primary Life Insurance company might just decline the application). Why is it GOOD to be accepted by a high quality, financially strong Life Insurance carrier vs. a low quality, financially weak Life Insurance carrier? Consumers generally receive significant policy improvements from the leading carriers: eg., Mutual company policyowner advantages, Participating Dividends, Lower net cost of coverage, Term Conversion options, etc.
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Are you in the insurance business… or, did you recently get ‘rated’ on a personal application?
Thursday April 2, 2009
