What does Mandatory Securities Valuation Reserve mean? Read on to discover the definition & meaning of the term Mandatory Securities Valuation Reserve - to help you better understand the language used in insurance policies.

Mandatory Securities Valuation Reserve

A reserve required of life insurers by state laws to offset declines in valuations of securities held as admitted assets. The reserve requirement recognizes the fact that life insurance contracts span long periods and fluctuations in the values of insurers' investments could negatively affect loss reserves.

We hope the you have a better understanding of the meaning of Mandatory Securities Valuation Reserve.

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