A reinsurance facultative offer is a specific underwriting decision issued by a reinsurer on an individual case submitted for review outside of automatic treaty rules. The reinsurer analyzes the applicant's medical, financial, and lifestyle profile and then offers terms-such as a particular rating, flat extra, or maximum face amount-under which it is willing to accept part of the risk. The primary carrier may accept, negotiate, or decline the facultative offer and must decide how to align its own offer to the client. Facultative offers are common on large face amounts, impaired risks, or unusual situations not contemplated by standard manuals.

In the field, advisors hear about reinsurance facultative offers when complex cases are "shopped" to multiple reinsurers to secure the best possible terms. General agencies coordinate with carrier underwriters to package the case, highlight favorable factors, and respond to questions. Different insurers may give different facultative offers, allowing the carrier to blend or choose the most attractive one. Advisors must then communicate final pricing, face amount, and any special conditions to the client. Because facultative decisions add time and complexity, they are usually reserved for cases where potential premiums or strategic importance justify the extra effort. Understanding facultative offers helps advisors manage expectations on large or challenging risks.