Statutory reserves

Statutory reserves,

Definition of Statutory reserves:

  1. Alternative term for legal reserves.

  2. Statutory reserves are state-mandated reserve requirements for insurance companies. By law, insurers must hold a portion of their assets as either cash or readily marketable securities so that they will be able to make good on their claims promptly.

  3. The McCarran-Ferguson Act, passed by Congress in 1945, gave states the authority to regulate insurance companies. To do business in a state, each insurer must be licensed by the state's insurance department and abide by its rules. Among those rules is how much money an insurer must keep in reserve (that is, have readily available) to make sure that it will be able to pay its future claims. Statutory reserves apply to a range of insurance products, including life insurance, health insurance, property and casualty insurance, long-term care insurance, and annuity contracts. The requirements can vary from one state to another and according to the type of insurance product.

How to use Statutory reserves in a sentence?

  1. Many states are moving toward a principle-based approach to calculating statutory reserves, which offers insurers more flexibility.
  2. Statutory reserves can also give investors confidence that an insurance company is financially solid and likely to remain that way.
  3. Insurance companies are regulated by the individual states, which set rules for how much money insurers must keep in reserve to cover their claims.

Meaning of Statutory reserves & Statutory reserves Definition

Statutory Reserves,

How To Define Statutory Reserves?

Meaning of Statutory Reserves: Legal provisions are the funds that the insurance regulator operating in your state must maintain at all times. The purpose of the legal provisions is to ensure that insurance companies have sufficient difficulty in meeting the legitimate claims of all their policyholders.

  • The legal requirement is the minimum amount and market securities that the insurance company must have.
  • They are required by national insurance regulations.
  • Insurers are free to set legal provisions beyond the minimum level using the principle approach.

Literal Meanings of Statutory Reserves

Statutory:

Meanings of Statutory:
  1. Required, authorized or authorized by law.

Sentences of Statutory
  1. The court provided legal compensation to each claimant

Synonyms of Statutory

allowable, permissible, acceptable, legitimate, admissible

Reserves:

Meanings of Reserves:
  1. Keep it for future use.

  2. Make sure (room, seat, ticket, etc.) is reserved for specific person's use.

  3. Refrain from making decisions or decisions without judgment and evidence.

  4. It is not necessary to supply the product for immediate use, but it is available when needed.

  5. An army unit is prevented from strengthening or protecting others, or from completing the regular armed forces available in an emergency.

  6. An extra player who replaces the team.

  7. A specific place for a specific purpose.

  8. Lack of peace or intelligence in style and expression.

  9. Abbreviation of reserve price

  10. (Ceramic or textile decoration) Places where the original material or background color is visible.

Sentences of Reserves
  1. Open half the dough and save the other half

  2. There was a seat reserved for him in the front row

  3. I will focus on his abilities until he repeats.

  4. Australia has significant reserves of coal, gas and uranium

  5. These people are kept as central reservoirs and can be moved anywhere.

  6. I was a prostitute for the World Cup team

  7. There are many areas where land is allocated, but which is now being used for different purposes.

Synonyms of Reserves

lay aside, supplementaries, secure, relief, order, prearrange for, stand-in, bank, stock, arrange for, book, auxiliaries, second-string, accumulation, fund, fresh troops, reserves, keep back, pool, withhold, delay, self-restraint, replacement, put aside, additional police, supply, self-containment