Solvency Surplus
Definition of "Solvency surplus"
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.
Popular Insurance Terms
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Branch of knowledge dealing with the mathematics of insurance, including probabilities. It is used in ensuring that risks are carefully evaluated, that adequate premiums are charged for ...
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Continuing on an indefinite basis. ...
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