reserve for nondeduction of deferred fractional premiums

  • An additional reserve liability to compensate for regular reserve under provisions on policies when due premiums would be netted against the face value of a policy in benefit payment. This provision is normally estimated by rough approximation and is generally immaterial to the financial statements.

    Internal Revenue Service 1

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