What does Statutory Reserve mean? Read on to discover the definition & meaning of the term Statutory Reserve - to help you better understand the language used in insurance policies.
A statutory reserve is an amount of money set aside by a financial institution, such as a bank or insurance firm, in order to meet unmatured obligations. It is a component of the balance sheet for an insurance firm and can be in the form of anything easily convertible to cash, such as marketable securities.
We hope the you have a better understanding of the meaning of Statutory Reserve.