Policy Reserve
/ˈpɒlɪsi rɪˌzɜrv/
Definitions
- (n.) A reserve fund that an insurance company legally holds to ensure sufficient assets are available to pay policyholder claims and benefits.
The insurer increased its policy reserve to meet regulatory requirements.
Forms
- policy reserve
- policy reserves
Related terms
See also
Commentary
Policy reserves are critical for insurers' solvency and are typically calculated based on actuarial principles and regulatory standards.
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.