What Does Surplus Mean?

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

Surplus

Surplus

The amount by which an insurer's assets exceed its liabilities. It is the equivalent of "owners' equity" in standard accounting terms. The ratio of an insurer's premiums written to its surplus is one of the key measures of its solvency.

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

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