term:

Reserve

reserve vt

re·served
re·serv·ing
: to keep back or set apart: as
a : to keep (a right, power, or interest) esp. by express declaration [all rights reserved] compare waive
b : to defer a determination of (a question of law) [the justices reserved the question because it was not an issue in the case]
n 1 : something stored or kept available for future use [an energy company with various unproven oil s]
2 : an act of reserving
3 : money kept in a separate account to meet future liabilities

legal reserve
: the minimum amount as determined by government standards of the deposits held by a bank or of the assets of a life insurance company required by law to be kept as reserves

loss reserve
1 : a reserve allocated by a bank for the purpose of absorbing losses [a loan loss reserve]
2 : an insurance company's reserve representing the discounted value of future payments to be made on losses which may have already occurred

policy reserve
: an insurance company's reserve representing the difference in value between the net premiums and assumed claims for a given year in life insurance

unearned premium reserve
: a reserve of funds which represents premiums paid to an insurance company but not yet applied to policy coverage and from which a policyholder is paid a refund in the event of cancellation prior to the period for which premiums have been paid
4 : reserve price

with reserve
: with a reserve price and with a seller reserving the right to reject all bids NOTE: A sale at auction is with reserve if there is no explicit indication to the contrary.


without reserve
: without a reserve price and with the seller bound to accept the highest bid

Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.