Premium Reserve
/ˈpriːmiəm rɪˈzɜːrv/
Definitions
- (n.) An accounting or actuarial liability account representing the portion of insurance premiums received that is allocated to future coverage periods.
The insurer increased its premium reserve to cover upcoming claims.
Forms
- premium reserve
- premium reserves
Related terms
See also
Commentary
Premium reserves are critical in insurance law and accounting, reflecting the insurer's obligation to provide coverage in future periods; precise calculation is essential for regulatory compliance.
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.