What Does Capital and Surplus Requirement Mean?

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What does Capital and Surplus Requirement mean? Read on to discover the definition & meaning of the term Capital and Surplus Requirement - to help you better understand the language used in insurance policies.

Capital and Surplus Requirement

Capital and Surplus Requirement

statutory requirement ordering companies to maintain their capital and surplus at an amount equal to or in excess of a specified amount to help assure the solvency of the company by providing a financial cushion against expected loss or misjudgments and generally measured as a company's admitted assets minus its liabilities, determined on a statutory accounting basis.

We hope the you have a better understanding of the meaning of Capital and Surplus Requirement.

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