A reserve for outstanding claims, ie another name for claims reserve. The expression is often used in association with the reserve deposited by a reinsurer with the cedant to cover outstanding claims. What the policyholder may suffer and what insurance us designed to cover. Can also be interchangeable with the term claim. As opposed to claims-made policy.
Insurance cover is provided for losses occurring in the defined period.
This is the usual basis of cover for most policies. The with-profit benefit is supplemented by a decreasing term assurance. This temporarily increases the death benefit. Low cost endowment assurances are used for mortgage repayment purposes. Low cost whole life assurances are used to provide high sums assured on death.