Solvency

by lakemen » Sat Jul 08, 2006 11:23 am
Posts: 1260
Joined: 18 May 2005

Solvency

Ability of insurance companies to pay claims made by policyholders. Solvency may be promoted by statutory accounting conventions, financial ratio tests, disclosure of financial data, minimum capital and surplus requirements, limits to investment made by insurance companies and the corporate activities.

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