legal reserve company

  • An advanced premium company that maintains loss reserves, unearned premiums, and other miscellaneous reserves as prescribed by the laws of the states. Practically all companies are legal reserve companies.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).