Create facultative

Creates a facultative cession.

A facultative cession is a type of reinsurance cession that can be applied on risk-by-risk basis. One or more facultative cessions can be attached to a location or policy.

Each time that the facultative cession is applied to a risk, distinct limit, attachment point, inuring priority, and participation percentage values may be defined. These values are specified as part of of a location-level policy-level reinsurance cession.

Facultative reinsurance is a procedure by which insurance companies reinsure risks on an individual basis (i.e. by location or policy), with a reinsurer having the option (faculty) to accept or decline each risk. This is in contrast to treaty reinsurance, where there is no faculty.

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