Page 414 - Misc Ebook IC 78

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(c) nature of perils covered
(d) the insurer's capacity to bear the loss and
(e) whether the number of risks is sufficiently large to

allow the law of large numbers.

The various types of Reinsurance are :
(a) Facultative Reinsurance - Under facultative

reinsurance, it's not obligatory for the ceding
company to cede to any particular accepting
company nor is it obligatory for the accepting
company to accept the ceding.

The accepting company, at its own discretion may
reject the offer or accept only part of the offer. The
accepting company can view the brief particulars
of the risk, rates and terms of acceptance, and the
retention of the ceding company, before deciding
their share of acceptance.

(b) Treaty Reinsurance -
(i) Proportional Treaty - This treaty is transacted

according to the following types :

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