UK: A provision or reserve. Each class of insurance business has a fund based on the balance of premiums less claims and expenses after taking into account any transfer to or from the profit and loss account. In life insurance, it often means a pool of assets managed separately for asset and liability management purposes. Funds may be legally or contractually segregated which may limit the freedom of the company to switch assets between funds.
****
Allocation of premiums from which losses can be paid.
****
MEDICAL,USA: In a managed care capitation contract, the specific amount of dollars in reserve that is available to compensate the contracted provider of services.