See statutory reserve. See also reserve for a list of many different kinds of reserves.----------[ Back
Liability item on a life insurer's balance sheet representing the redundant or excessive premiums paid under the level-premium method during the early years. Assets must be accumulated to offset the legal reserve liability. Purpose of the legal reserve is to provide lifetime protection.
The minimum reserve required by law for an insurer for the specified line of insurance, in the jurisdiction where the insurer is operating.
Policy reserves maintained according to the standard established by the insurance laws of the various states.
The minimum reserve that a company must keep to meet future claims and obligations.
The minimum reserve which an insurance company must keep to meet future claims and obligations, as calculated under their state insurance code.