Taking into account how important the reinsurance policy is at the Latin American level and notwithstanding that there’re two types of reinsurance, the present research will focus on the facultative reinsurance as it has become necessary to address the topic as a process of reflection and thought not only from the technical standpoint but also from the practical viewpoint by reviewing particular situations such as controversies or discussions about the conditions of that policy, comments, decisions and precedents that have been key in English jurisprudence. All is presented as an assessment between Latin American reinsurance companies and reinsurance companies in the English arena (London). Hence, the review starts on the very concept of the reinsurance policy, going through its parts, its execution, the good faith principle, conditions, loss of the facultative contract and control and cooperation clauses. The emphasis on the legal nature of the contract, the reinsurance broker, the insured risk and the importance of relevant cases and the day to day development along discussions generated are in great part analyzed along with English jurisprudence, tribunals and English scholars in trying to inform about the development of the contract, its usefulness and the least positive consequences that may arise, all of which is part of this article.