What Does Liquidity Ratio Mean?

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

Liquidity Ratio

Liquidity Ratio

A measurement of key financial variables that impact an insurer's ability to pay claims. In the Insurance Regulatory Information System (IRIS), liabilities to liquid assets and agent's balances to surplus are monitored.

We hope the you have a better understanding of the meaning of Liquidity Ratio.

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