Negative Reserves

I had a question about negative reserves. I passed MLC last sitting but am now doing the modules and running into an issue that I don't understand. I thought that reserves were never negative if a reserve calculation results in a negative reserve we say that the reserve is 0 and we don't gain negative interest.



Any insights when negative reserves occur and how that works? Maybe a chapter it's on if anyone is currently studying from ASM. or a sample problem that deals with it.



Thanks

Negative Reserves