What does Statutory Capital mean? Read on to discover the definition & meaning of the term Statutory Capital - to help you better understand the language used in insurance policies.
The amount of capital and/or surplus required in order for an insurance company to obtain and retain a license to do business. May be stated as a minimum dollar amount or by reference to a solvency ratio or a solvency margin.
We hope the you have a better understanding of the meaning of Statutory Capital.