The Reserves

[Mark]

nolhga.com :: Facts & Figures


Have you ever studied "The Reserves" and how all of that will work?

Reminds me of the fdic for the banks.


I wonder how much money the avg state has put aside or collected and how often the money is used.

 

[redsquash]

The states do not collect or receive the money reported as reserves on insurance company's annual statement. The money is still with the insurance company, and they can invest it any way that want.

The minimum reserves are required to ensure that there would be sufficient money available to pay the claims.

Insurance companies, on the other hand want to keep as much in reserves as they can - and then the state comes after them saying "you have too much in reserves" why is this important - because it affects their taxable income. Thanks to Ron Reagan, there are special provisions in the tax code that apply only to insurance company and no other industry.