All the following statements concerning the facultative method of reinsuring are correct, EXCEPT:

		The primary company forwards to the reinsurer a copy of the application for each risk before the primary company accepts the application.
		The reinsurer reviews the application and other available information before accepting the risk.
		If the risk meets the reinsurer's normal underwriting standards, it must accept the risk.
		The facultative method is particularly advantageous to a new primary company with limited underwriting experience.