See: Rating
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UK: Prospective excess of loss treaty under which the cedant pays high premiums to the reinsurer for the purpose of paying later losses. The reinsurer deducts charges from the fund and, at the end of the contract, returns the balance to the cedant as profit commission.
Insurance Encyclopedia
Funded life insurance trust
Trust established to distribute life insurance proceeds. Because insurance companies cannot act as trustees or guardians, the policy proceeds are paid to a trust company and distributed under the terms of a trust agreement creating greater flexibility in distribution of the proceeds. The trustee has control over both the policy proceeds and also securities or other property to provide funds out of which to pay the premiums. This type of arrangement is a funded life insurance trust.
Funded pension plan (Pensions)
Pension plan wherein enough funds are currently available to pay out all future retirement benefit claims.
Funding
In regard to pension schemes it is the advance provision for future liabilities by the accumulation of assets that are normally external to the employer’s business.
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Setting aside assets to meet an eventual obligation.
Funding agency
Entity that holds the assets of a retirement plan, which is often the insurance company.
Funding deficiency
See: accumulated funding deficiency .
Funding instrument
See: funding vehicle .
Funding level
Dollar amount of funds needed to finance a medical care program.
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UK: The comparison of a pension scheme’s assets and liabilities.
Funding level (Health Insurance)
The amount of money needed to buy a medical care program. Either the premium cost for an insured program or an amount charged for anticipated claim loss and other fees.
Funding method
System used by employers to pay for health insurance plans such as prospective premium payment, retrospective premium payment, shared risk, or self-funding.