What Does Funded Covers Mean?

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What does Funded Covers mean? Read on to discover the definition & meaning of the term Funded Covers - to help you better understand the language used in insurance policies.

Funded Covers

Funded Covers

Also known as "time and distance" that is, no real underwriting risk to the reinsurer, only a credit risk, timing risk, or investment risk. The lump sum prepaid premium equals the reinsurance recoverable, recognizing the time value of money.

We hope the you have a better understanding of the meaning of Funded Covers.

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