Full preliminary term reserve valuation

{
  "id": "MLC-T-INS-001603",
  "term": "Full preliminary term reserve valuation",
  "field": "Insurance and risk management",
  "definition": "A method of calculating life insurance policy reserves that allows for a higher allocation of premiums to cover initial acquisition expenses in the first policy year. This approach recognizes that the first year's expenses, such as commissions and underwriting costs, are significantly higher than subsequent years. It results in a lower reserve requirement in the first year compared to net level premium valuation.",
  "url": "https://mlchart.com/terminology/insurance/full-preliminary-term-reserve-valuation/"
}