what is facultative (fac) reinsurance
Facultative Reinsurance. What is 'Facultative Reinsurance'. Facultative reinsurance is a type of reinsurance contract that covers a single risk. Facultative reinsurance is one of the two types of reinsurance contract transaction, with the other type being treaty reinsurance. Facultative reinsurance is considered to be more transaction-based than treaty reinsurance.