Question

What is the purpose of "solvency margin" regulation?

a.

To ensure that an insurer's liabilities are not excessive in proportion to their assets

b.

To determine which assets are allowable for calculation of solvency margin

c.

To stipulate certain minimum rules with reference to reserves

d.

To compel an insurer to adjust its retention upwards

Posted under IC85 Reinsurance Management

Answer: (a).To ensure that an insurer's liabilities are not excessive in proportion to their assets Explanation:Solvency margin regulation ensures that an insurer's liabilities are not excessive in proportion to their assets.

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Q. What is the purpose of "solvency margin" regulation?
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