insurance reserve

Reserve Re*serve", n. [F. r['e]serve.] 1. The act of reserving, or keeping back; reservation. [1913 Webster]

However any one may concur in the general scheme, it is still with certain reserves and deviations. --Addison. [1913 Webster]

2. That which is reserved, or kept back, as for future use. [1913 Webster]

The virgins, besides the oil in their lamps, carried likewise a reserve in some other vessel for a continual supply. --Tillotson. [1913 Webster]

3. That which is excepted; exception. [1913 Webster]

Each has some darling lust, which pleads for a reserve. --Rogers. [1913 Webster]

4. Restraint of freedom in words or actions; backwardness; caution in personal behavior. [1913 Webster]

My soul, surprised, and from her sex disjoined, Left all reserve, and all the sex, behind. --Prior. [1913 Webster]

The clergyman's shy and sensitive reserve had balked this scheme. --Hawthorne. [1913 Webster]

5. A tract of land reserved, or set apart, for a particular purpose; as, the Connecticut Reserve in Ohio, originally set apart for the school fund of Connecticut; the Clergy Reserves in Canada, for the support of the clergy. [1913 Webster]

6. (Mil.) (a) A body of troops in the rear of an army drawn up for battle, reserved to support the other lines as occasion may require; a force or body of troops kept for an exigency. (b) troops trained but released from active service, retained as a formal part of the military force, and liable to be recalled to active service in cases of national need (see {Army organization}, above). [1913 Webster +PJC]

7. (Banking) Funds kept on hand to meet liabilities. [1913 Webster]

8. (Finance) (a) That part of the assets of a bank or other financial institution specially kept in cash in a more or less liquid form as a reasonable provision for meeting all demands which may be made upon it; specif.: (b) (Banking) Usually, the uninvested cash kept on hand for this purpose, called the {real reserve}. In Great Britain the ultimate real reserve is the gold kept on hand in the Bank of England, largely represented by the notes in hand in its own banking department; and any balance which a bank has with the Bank of England is a part of its reserve. In the United States the reserve of a national bank consists of the amount of lawful money it holds on hand against deposits, which is required by law (in 1913) to be not less than 15 per cent (--U. S. Rev. Stat. secs. 5191, 5192), three fifths of which the banks not in a reserve city (which see) may keep deposited as balances in national banks that are in reserve cities (--U. S. Rev. Stat. sec. 5192). (c) (Life Insurance) The amount of funds or assets necessary for a company to have at any given time to enable it, with interest and premiums paid as they shall accure, to meet all claims on the insurance then in force as they would mature according to the particular mortality table accepted. The reserve is always reckoned as a liability, and is calculated on net premiums. It is theoretically the difference between the present value of the total insurance and the present value of the future premiums on the insurance. The reserve, being an amount for which another company could, theoretically, afford to take over the insurance, is sometimes called the

{reinsurance fund} or the

{self-insurance fund}. For the first year upon any policy the net premium is called the

{initial reserve}, and the balance left at the end of the year including interest is the

{terminal reserve}. For subsequent years the initial reserve is the net premium, if any, plus the terminal reserve of the previous year. The portion of the reserve to be absorbed from the initial reserve in any year in payment of losses is sometimes called the

{insurance reserve}, and the terminal reserve is then called the

{investment reserve}. [Webster 1913 Suppl.]

9. In exhibitions, a distinction which indicates that the recipient will get a prize if another should be disqualified. [Webster 1913 Suppl.]

10. (Calico Printing) A resist. [Webster 1913 Suppl.]

11. A preparation used on an object being electroplated to fix the limits of the deposit. [Webster 1913 Suppl.]