Claim Reserve
/ˈkleɪm rɪˌzɜrv/
Definitions
- (n.) An amount set aside by an insurer to cover the estimated cost of settling a claim.
The insurer increased the claim reserve after reviewing the damages.
Forms
- claim reserve
- claim reserves
Related terms
See also
Commentary
Claim reserves are critical in insurance accounting to ensure sufficient funds are available for pending claims, reflecting prudent financial management.
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.