Example: Selecting Program Type Options

This section relates to Coverages when creating or editing an allocation. The following illustrates the difference between selecting Full Distribution and Fixed Rate for a Program Type when defining coverages.

Full Distribution Coverage

If you select Full Distribution under Program Type, you will enter rates into the Weighting Rate fields when defining a rate class. Then Quadra will apply the rates to the selected assets and distribute the total cost of risk to meet the target allocation.

With a Full Distribution program type, charges are calculated based on weighting rates, how assets are quantified, and the full distribution of costs across assets.

Fixed Rate Coverage

If you select Fixed Rate under Program Type, you will define dollar amounts that serve as rates for each rate class. These amounts will be used to calculate the final charges.

With this program type, Quadra will not take the target allocation into account.