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.
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.