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.]