Contract Types
Facultative. Facultative reinsurance can be proportional and non-proportional.
For a facultative contract, the system records policy-specific risk description
information such as detailed risk classification, and coverage details like policy
number, name insured, policy deductible, etc. The coverage descriptions for facultative
and treaty contracts are the same in that the user is allowed to build a list of
coverage which are applicable to the contract
Treaty. Treaty (obligatory) contracts support both direct and indirect
business. For a treaty contract specific risk categories can be included with risk
class and use exceptions by primary or excess business, which allow the user to
build a comprehensive profile of what types of risks and uses are covered under
the treaty. The coverage description for facultative and treaty contracts are the
same in that the user is allowed to build a list of coverage which are applicable
to the contract.