Asset Adequacy Tested Reserve(redirected from Asset Adequacy Tested Reserves)
Asset Adequacy Tested Reserve
The liquid assets that a life insurance company must keep at all times. The asset adequacy tested reserve is set by law or regulation and equals the insurance company's total liabilities, assuming that it must pay all possible claims at once. This amount is tested under a number of different scenarios to ensure the company can pay claims regardless of prevailing interest rates. See also: Required reserve.