Facultative Obligatory Treaty
A reinsurance contract under which the ceding company has the option to cede and the reinsurer is obliged to accept cessions of risks of a defined class, provided the risks fall within the contract guidelines.
A reinsurance contract under which the ceding company has the option to cede and the reinsurer is obliged to accept cessions of risks of a defined class, provided the risks fall within the contract guidelines.