policy reserve

Definition of "policy reserve"
  1. The calculated difference between the net premiums received and the estimated claims by an insurance company for a specific year in the realm of life insurance
How to use "policy reserve" in a sentence
  1. The policy reserve ensures that the insurance company has sufficient funds to cover potential claims.
  2. He was responsible for calculating the policy reserve to prepare for the upcoming year's claims.
  3. The increase in policy reserve highlights the company's strategy to mitigate the risk of large scale claims.

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