reserve

Verb: To appropriate to a particular purpose. To exclude. To set aside. To set apart from that which has been granted. To make a reservation. Meigs v M'Clung's Lessee (US) 9 Cranch 11, 17, 3 L Ed 639, 641. Noun: An organization of the Armed Forces, holding men for training without serious disruption of their civilian activities, but subject to call of active service. A fund or sum of money retained for a special purpose. A fund of a bank, known as a legal reserve, being required by law in an amount proportioned to the deposits by way of assurance to depositors of opportunity to withdraw cash as they need or desire it. State v Brewer, 202 NC 187, 162 SE 363, 81 ALR 1424. In insurance, a sum of money variously computed or estimated, which, with accretions from interest, is set aside, as a fund with which to mature or liquidate, either by payment or reinsurance with other companies, future unaccrued and contingent claims, and claims accrued but contingent and indefinite as to amount or time of payment. Maryland Casualty Co. v United States, 251 US 342, 64 L Ed 297, 40 S Ct 155. In the distinctive meaning in respect of life insurance maintained on the level premium basis:-the accummulated saving upon a policy which results from the fact that the amount of the premium is greater than the mortality cost during the early years of the insurance and less than the mortality cost in later years, such amount constituting the source of the non-forfeiture value of the policy upon lapse. Williams v Union Central Life Ins. Co. 291 US 170, 78 L Ed 711, 54 S Ct 348, 92 ALR 693. The amount of money or assets necessary for a life insurance company to have at any given time to enable it, with interest gained and premiums paid as they shall mature, to meet all claims on the insurance policies then in force as they shall become due according to the particular mortality table accepted; to be reckoned as a liability, and calculated on net premiums; theoretically, the difference between the present value of the total insurance and the present value of the future premiums on the insurance. Anno: 13 ALR 187. See loss and loss expense reserve; mean reserve; terminal reserve; unearned premium reserve.