Statutory Reserves
Definition of "Statutory reserves"
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.
Popular Insurance Terms
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Association formed to address the requirements of government risk pools. ...
Coverage in which an insurance company's portfolio is ceded to a re insurer who re insures a given percentage of a particular line of business. ...
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Payment for coverage that remains throughout the same premium-paying period. ...
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