Deficiency Reserve


Definition of "Deficiency reserve"

Shannon Mooneyham
  Only Way Realty

Addition to reserves of a life insurance company required by various states because the valuation premium is greater than the GROSS PREMIUM. Without a deficiency reserve, the normal reserve by itself would be less than the actual reserve required.


Search Real Estate Glossary

 

Related Real Estate Glossary terms

Book Cost

Expenditures incurred to initially purchase property, including incidental costs necessary to put th ...

Section 1034

Provision in the Internal Revenue Code applicable to the sale of an individual's house. The gain or ...

Appellant

Party who petitions a lower court decision to the next higher court or moves a dispute from one juri ...

Recourse Loan

A loan whereby the lender, in the event of a default, has recourse beyond the collateral pledged to ...

Lloyd's Broker

Specialist whose task is to place insurance with the specialized syndicates that underwrite particul ...

Age Setback

Subtraction of a number of years from a standard table of life insurance rates under the assumption ...

Related Real Estate FAQ

What Is A Broker?

An agent who is authorized to open and run his/her own agency. All real estate offices have one prin ...

What Is A Lifetime Rate Cap?

A lifetime rate cap is an adjustable-rate mortgage (ARM), this cap limits the amount the interest ra ...

What Do I Need To Know About Business Insurance?

Commercial insurance is designed to help protect many of the risks your business can face, including ...

What Is An Assessed Value?

The public tax assessor value of a property as determined for the purpose of taxation. ...

What Is Depreciation?

Depreciation is a decline in the value of property due to general wear and tear, or is also known as ...

What Is A Wraparound Mortgage?

A wraparound mortgage is a new mortgage that includes the remaining balance on an old mortgage, plus ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews
Read Reviews

Agents join here
Add our widget on your Website

Real Estate Advice

Build or Buy? That’s the Big Question Mortgage Loan Types How to become a real estate agent When to buy a house What do Real Estate Attorneys do?

FAQ

What is a loan-to-value (LTD) ratio? What is hazard insurance? What is a mortgage banker? What is a front-end ratio? What do I need to know about Indemnity Insurance?