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Legal Reserve

   Also found in: Dictionary/thesaurus 0.01 sec.

Liquid assets that life insurance companies are required by statute to set aside and maintain to assure payment of claims and benefits. In banking, that percentage of bank deposits that must by law be maintained in cash or equally liquid assets to meet the demands of depositors.



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HCSC, based in Chicago, is a not-for-profit, mutual legal reserve company that provides health insurance through its divisions that include Blue Cross and Blue Shield of Illinois, Blue Cross and Blue Shield of Texas and Blue Cross and Blue Shield of New Mexico.
Blue Cross and Blue Shield of Illinois, a division of Health Care Service Corporation, a Mutual Legal Reserve Company (HCSC), is the oldest and largest health insurance company in the state.
In the early 1920s, it increased its capital stock, became a legal reserve company and joined a select group of African-American insurance companies.
 
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