What Does Capacity Mean?

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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.

Capacity

Capacity

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.

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