Funded retention is a risk financing term referring to a plan whereby an entity sets aside funds in advance to cover losses that have been retained by the entity rather than transferred to an insurer or other party.
Funded self-insurance is a more formalized approach to self-insurance, involving the creation of a target asset account to match loss reserves. As opposed to “unreasonable” self-insurance or pay-as-you-go self-insurance.
Withholding is a provision in a reinsurance contract whereby some or all of the premium due to the reinsurer, usually an unauthorized reinsurer, is not paid but is retained by the ceding company, or to allow the ceding company to reduce the reserve for unauthorized reinsurance. in its statutory declaration or be deposited in a loss escrow account for the purposes of payment of claims. The reinsurer’s assets, instead of cash, are “funds held by or deposited with reinsurers”.
A futures is an agreement traded on a futures exchange to make, take delivery or settle in cash based on the actual or expected price, level, performance or value of one or more underlying assets.