reserve

That amount, which together with future premiums, and interest will be sufficient to meet the company’s obligations under its policy contracts, and for various contingencies, such as loss from investments, catastrophe claims, commission liability, claim liability, expense liability, and unearned premium liability. Technically, a reserve is the liability set up by an insurer for these purposes. The assets in relation to the reserves are the assets the insurer has set aside to satisfy that liability.