In atreaty reinsurancecontract, the ceding company and the accepting company agree on a broad set of insurance transactions that will be covered by reinsurance. For example, the ceding insurance company may cede all risks for flood damage and the accepting company may accept all risks for flood ...
that is known as facultative reinsurance. Facultative reinsurance is a deal that is considered a one-time transaction whereas treaty reinsurance is more of a long-term agreement that would cover multiple risks over an extended period of time. ...