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LSDefine

Simple English definitions for legal terms

loss reserve

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A quick definition of loss reserve:

A loss reserve is money that an insurance company sets aside to pay for future claims. It's like a savings account for when bad things happen. The insurance company estimates how much money they will need to pay for claims that haven't happened yet, and they put that money in the loss reserve. This helps make sure that the insurance company can pay for any claims that come up in the future.

A more thorough explanation:

A loss reserve is a type of reserve that represents the estimated value of future payments for losses that have been incurred but not yet reported. This type of reserve is commonly used by insurance companies to ensure that they have enough funds to cover future claims.

  • An insurance company sets aside a loss reserve of $10 million to cover future claims related to a recent natural disaster. This reserve represents the estimated value of future payments for losses that have been incurred but not yet reported.
  • A bank sets aside a loss reserve of $5 million to cover possible losses from defaulting loans. This reserve ensures that the bank has enough funds to cover any losses that may occur in the future.

These examples illustrate how loss reserves are used to ensure that companies have enough funds to cover future liabilities. By setting aside funds in a loss reserve, companies can protect themselves from financial losses and ensure that they are able to meet their obligations to customers and stakeholders.

loss ratio | lost

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THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
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@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
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