What Is Solvency Margin In Life Insurance?

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   David RacichPRO

   Fountain Hills, Arizona

   This is a technical accounting term on the balance sheet of an insurance company. The measurement of a company's solvency general takes into account the distribution of its surplus and asset valuation reserve, then the market value of it's assets versus its liabilities to determine its liquidity. Rating Services monitor the balance sheet items of insurance companies and may be helpful in determining the selection of company.
   
   
   

   Answered on May 9, 2013

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