At the beginning оf 2026, Atlаntic Cоmpаny entered intо а group health insurance contract with Cigna Insurance to provide coverage for its employees and their dependents. The policy had a premium of $600,000 for the year. Cigna Insurance estimated the Atlantic Company group's expected losses (health care related claims) during the year. However, by the end of 2026, the Atlantic Company group's actual health care related claims were significantly higher than the amount expected by the insurer. Because the Atlantic Company group's actual loss experience was higher than expected = Cigna Insurance re-calculated the cost of the coverage and determined that the company must pay an additional $50,000 in premium (beyond the amount it had already paid) within 90 days of the end of the policy period. What type of financing arrangement did Atlantic Company enter into?
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