what is facultative reinsurance 
facultative reinsurance is coverage purchased by a primary insurer to cover a single risk or a block of risks held in the primary insurer s book of business facultative reinsurance is one of two types of reinsurance the other type of reinsurance is called treaty reinsurance facultative reinsurance is considered to be more of a one time transactional deal while treaty reinsurance is typically part of a long term arrangement of coverage between two parties 