Skip to Content

funded covers

Funded covers are 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.

On This Page

funded covers

Funded covers are 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.

Additional Information


The lump sum prepaid premium equals the reinsurance recoverable, recognizing the time value of money.