A reinsurance policy that provides an insurer with coverage for specific individual risks that are unusual or so large that they are not covered in the insurance company's reinsurance treaties. This can include policies for jumbo jets or oil rigs. Re insurers have no obligation to take on facultative reinsurance, but can assess each risk individually. By contrast, under treaty reinsurance, the re insurer agrees to assume a certain percentage of entire classes of business, such as various kinds of auto, up to pre-set limits.