Solidity Surplus
Definition of "Solidity surplus"
Additional amount of surplus generated by an additional amount of capital to be included in the surplus above that required by the statutory requirements. This additional surplus is necessary in the event unforeseen contingencies occur. Such contingencies could impair the insurance company's ability to make future benefit payments for which it has received the premiums as well as to fund the growth of new sales.
Popular Insurance Terms
Option to an insurance company to replace, reconstruct (repair), or reproduce (rebuild) damaged or destroyed property covered by property insurance rather than indemnify an insured in cash. ...
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