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- Legal reserve insurance refers to the practice of life insurance companies maintaining reserves to meet future commitments under the policies they have issued123. These reserve liabilities are established as financial safeguards to ensure the company can pay claims and other commitments when due3. Compliance with legal reserve requirements is essential for life insurance companies34.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.This policy reserve (Legal Reserve) fund is a liability to the life insurance company. The fund is established as a way of determining or measuring the assets the company must maintain in order to be able to meet its future commitments under the policies it has issued.www.saferetirementstrategies.org/an-explanation-o…A legal reserve life insurance company is a life insurer that maintains reserves at least equal to the minimum prescribed by law or regulation in the state in which it does business.www.irmi.com/term/insurance-definitions/legal-rese…The reserve liabilities are established as financial safeguards to ensure the company will have sufficient assets to pay its claims and other commitments when they fall due. Life companies that comply with the legal reserve requirements established by the state insurance laws are known as legal reserve life insurance companies.www.capaltstrategies.com/blog/senior-life-settleme…A statutory reserve is a legal requirement for insurance companies to hold a certain amount of funds in reserves to protect policyholders’ future benefits and ensure that the insurers are financially healthy.corporatefinanceinstitute.com/resources/wealth-ma…
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