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- Legal Reserve System is a policy reserve fund that is a liability to the life insurance company1. The fund is established as a way of determining or measuring the assets the company must maintain in order to be able to meet its future commitments under the policies it has issued1. The US Legal Reserve System (USLR) was created to ensure that no legitimate death claim could fail to be paid due to insolvency2. A statutory reserve is a legal requirement for insurance companies to hold a certain amount of funds in reserves to protect policyholders’ future benefits and ensure that the insurers are financially healthy3. Legal Reserve is a liquid asset that life insurance companies are required by statute to set aside and maintain to assure payment of claims and benefits4.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.This policy reserve (Legal Reserve) fund is a liability to the life insurance company. The fund is established as a way of determining or measuring the assets the company must maintain in order to be able to meet its future commitments under the policies it has issued.www.saferetirementstrategies.org/an-explanation-o…The US Legal Reserve System (USLR) was created to ensure that no legitimate death claim could fail to be paid due to insolvency. The USLR has withstood the test of time, recessions, depressions, world wars, and financial crises to prove itself as a stable charter supporting the American life insurance industry.www.soteriacapital.com/blog/the-us-legal-reserve-s…A statutory reserve is a legal requirement for insurance companies to hold a certain amount of funds in reserves to protect policyholders’ future benefits and ensure that the insurers are financially healthy.corporatefinanceinstitute.com/resources/wealth-ma…Legal Reserve Liquid assets that life insurance companies are required by statute to set aside and maintain to assure payment of claims and benefits. In banking, that percentage of bank deposits that must by law be maintained in cash or equally liquid assets to meet the demands of depositors.legal-dictionary.thefreedictionary.com/Legal+Reserve
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