Question

What is "Solvency Margin"?

a.

The excess of assets over liabilities to demonstrate an insurer's ability to carry on business

b.

The amount of reinsurance recoveries received by the reinsured

c.

The calculation of commissions based on the loss ratio in reinsurance contracts

d.

The excess of liabilities over assets as determined by law and regulation

Answer: (a).The excess of assets over liabilities to demonstrate an insurer's ability to carry on business Explanation:"Solvency Margin" can be defined as the excess of assets over liabilities as determined in compliance with law and regulation. It is a measure used to demonstrate an insurer's financial strength and ability to carry on business.

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Q. What is "Solvency Margin"?

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