What Does Solvency Mean?

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

Solvency

Solvency

Solvency refers to a business entity's ability to meet its long-term financial obligations. It is achieved when the entity's assets exceed its liabilities.

We hope the you have a better understanding of the meaning of Solvency.

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