Definition of "Claims reserve"

Andres Morejon real estate agent

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Andres Morejonelite badge icon

RLAH Real Estate

Monetary fund established to pay for claims that the insurance company is aware of (claims incurred or future claims) but that the insurance company has not yet settled. This reserve is critical since it is an accurate indication of a company's liabilities. This reserve does not take into account incurred but not reported losses (IBNR).

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