is reinsurance on case-by-case basis of one or more particular risks. An reinsured offers the reinsurer each risk separately. This offer is issued in the form of reinsurance slip. Facultative reinsurance provides complete freedom to an reinsured and reinsurer. An reinsured has the right to offer any risk, and an reinsurer may reject this risk, or accept it in part. Usually, facultative reinsurance is used when reinsuring extra major risks.