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, elective surplus, emergency fund, stockpile
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.
