Actuarial Reserve
/ˌækʃuˈɛriəl rɪˈzɜrv/
Definitions
- (n.) A fund or liability calculated by actuaries representing the present value of future policy benefits minus future net premiums, maintained by insurers to ensure solvency.
The insurer set aside an adequate actuarial reserve to cover anticipated claims.
Forms
- actuarial reserve
- actuarial reserves
Related terms
See also
Commentary
Actuarial reserves are central to insurance law and regulation, requiring precise actuarial methods to maintain insurer solvency; clarity in their computation is critical for legal compliance and financial reporting.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.