Statutory Reserves

Definition of "Statutory reserves"

Russ Conners real estate agent
Russ Conners, Real Estate Agent Century 21 Redwood

Reserves required by state regulators. Because regulators must assure that an insurance company remains solvent and that it can pay future claims, they set conservative standards for insurer reserves. Regulators have various formulas for valuing reserves, such as the loss frequency method and the Commissioners Reserve Valuation Method.


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