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3

Features and operation of Chapter

facultative reinsurance 3

Contents Syllabus learning
outcomes

Learning objectives
Introduction
Key terms
A Main features and operation of different types of facultative reinsurance 3.1
B Calculation of reinsurance premiums and claims recoveries 3.2

Key points
Question answers
Self-test questions

Learning objectives Reference copy for CII Face to Face Training
After studying this chapter, you should be able to:
• describe the features of facultative reinsurance;
• distinguish between facultative proportional and facultative non-proportional reinsurance and how
each operates;
• outline the various definitions of premium income used in reinsurance and how they apply to
reinsurance programmes;
• calculate reinsurance premiums and claims recoveries; and
• differentiate between the premium and claims calculations for proportional and non-proportional
types of facultative reinsurance.