What does Claims Reserve mean? Read on to discover the definition & meaning of the term Claims Reserve - to help you better understand the language used in insurance policies.
A claims reserve is a money reserve an insurance company deliberately sets aside to use to pay unsettled claims in the future because it takes time to process claims and make sure they are covered and legitimate. Insurers use this fund to pay benefits to policyholders who file legitimate claims.
We hope the you have a better understanding of the meaning of Claims Reserve.