What does Capacity mean? Read on to discover the definition & meaning of the term Capacity - to help you better understand the language used in insurance policies.
The largest amount of insurance or reinsurance available from a company or the market in general. Capacity is determined by financial strength and is also used to refer to the additional amount of business (premium volume) that a company or the total market could write based on excess (unused) capital that is, surplus capacity.
We hope the you have a better understanding of the meaning of Capacity.