Policy reserves represent future obligations on the part of?

Policy reserves represent future obligations on the part of the insurance company. This is because reserves are amounts set aside by the insurance company to ensure that it can meet its future policyholder claims and benefits. When a policy is issued, the insurer estimates the future payouts necessary to fulfill its contractual obligations to policyholders. These reserves are crucial for the financial stability of the insurance company, as they ensure that sufficient funds are available when claims arise.

The insurance company's duty to maintain these reserves is mandated by regulatory requirements to ensure that they are capable of honoring all future claims made by policyholders. This highlights the role of the insurance company as the entity responsible for managing the financial aspects of the policies it underwrites, including holding reserves as a protective measure for both the company and its policyholders.