Definition of "Solvency surplus"

Carl Young real estate agent
Carl Young, Real Estate Agent Young Marketing Group - Keller Williams Realty

Additional amount of surplus generated by an additional amount of capital to be included in book value surplus. This additional surplus is necessary to act as a supplement to the statutory reserves 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.

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