The following are conditional upon acceptance of the facultative reinsurance business:

1. The Accepted liabilities shall be either within the Company's retention or exceeding it. In the latter case, the Company must have a reinsurance treaty that protects the surplus liability and the treaty shall contain a provision that allows the company to accept the facultative reinsurance operations within the determined limits.

2. If the Company intends to cover the surplus liability in whole or in part with the facultative reinsurance with another reinsurer, in this case it shall obtain the prior approval of the ceding company.