Each risk under a facultative contract is individually underwritten by the reinsurer. Agreement to provide reinsurance “facilitates” the primary insurer’s desire to write the business; without the reinsurance, the primary insurer may be unable to provide coverage for the agent. good example of the use of facultative reinsurance is a property risk with a very high total insurable value (TIV, or Maximum Possible Loss). The primary insurer does not have the capacity itself to provide the requested limits.