FACULTATIVE CERTIFICATE
facultative certificate (fak-<<schwa>>l-tay-tiv).Insurance. A contract of reinsurance
separately negotiated to cover risks under a single insurance policy. • Facultative reinsurance
allows the reinsurer the “faculty” of assessing and possibly rejecting a particular risk (esp. if
underwriting information is inadequate). [Cases: Insurance 3605. C.J.S. Insurance § 1504.][Blacks Law 8th]