reserve basis

  • A mathematical formula or method for arriving at the amount of a policy reserve. This term is generally applied to distinguish between the expense differentials of first-year and renewal net premiums.

    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).