Voluntary Reserve

Definition

  • A financial reserve kept by insurance company over and above government regulations that is used to settle future claims.

Synonyms
liquefiable assets, emergency fund, stockpile, elective surplus

Related Terms and Acronyms

  • Bank Reserves Definition,
    • Banks' holdings of deposits.
  • General Account (GA) Acronym, Very Important,
    • Investments and assets that an insurer uses for paying benefits and claims.
  • Legal Reserve Definition,
    • The legally mandated minimum amount of money an insurer must keep liquid in order to satisfy its obligations to policyholders.
  • Loss Reserve Definition,
    • A reserve of money and liquid assets set aside by an insurer for the payment of claims that have been submitted but have yet to be paid out.
  • Valuation Reserve Definition,
    • A financial reserve kept by an insurer in case a liability is larger than expected or an insurer's investments or assets are overvalued.
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