Definition of "Solvency surplus"

Andrea  Christianson real estate agent

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Andrea Christiansonelite badge icon

Coldwell Banker Bishop 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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