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reserve changes from negative to positive and from concave to convex under the condition stated in Proposition 5.3 of this paper. As the premium tends to optimum premium rate, the local maximum in the first arch approaches the local minimum in the second arch and they all converge at a time point tm. As a result, the reserve benefit shifts upwards as the premium rate increases. It is concluded that a proper premium rate between initial and optimum premium rates exist in order to fulfil certain reserves requirements and an algorithm to determine this value was developed.