Question

What does Available Solvency Margin (ASM) represent in insurance business?

a.

The value of liabilities

b.

The excess of assets over the value of liabilities

c.

Required Solvency Margin (RSM)

d.

The total assets of the company

Answer: (b).The excess of assets over the value of liabilities Explanation:Available Solvency Margin (ASM) represents the excess of the value of assets over the value of liabilities in insurance business.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What does Available Solvency Margin (ASM) represent in insurance business?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. Which form is used for the valuation of assets in the computation of Solvency Margin for insurers in India?

Q. In the determination of the amount of liabilities for insurers in India, which form is used for life insurance business?

Q. For general insurance business in India, which form is used for the determination of the amount of liabilities?

Q. Which statement is prepared for the determination of Solvency Margin for life insurance business in India?

Q. What specific requirement is for health business in the context of compliance in the computation of Solvency Margin for insurers in India?

Q. What is the formula for determining Solvency Margin (SM) in a non-life insurance company?

Q. How is Required Solvency Margin (RSM) calculated based on net premiums (RSM-1)?

Q. What does RSM-2 represent in the context of Solvency Analysis for a non-life insurance company?

Q. How is RSM-2 calculated?

Q. What is the purpose of Market Test Ratios in financial analysis?

Q. Which accounting ratio is specifically required for a life insurance company to analyze the growth in life funds during the current financial year compared to the previous year?

Q. What does the ratio of First Insurance to the Total Business completed during the year measure for a life insurance company?

Q. What is the purpose of Income Analysis for a life insurance company?

Q. Which ratio is specifically required for a non-life insurance company to assess its solvency?

Q. What does the Policy Payments Break-up ratio for a life insurance company analyze?

Q. Which ratio is specifically used to analyze the management expenses breakdown for salaries, commissions, and other expenses for a life insurance company?

Q. What does the ratio of Expenses of Management to total Premium Income measure for a life insurance company?

Q. Which ratio is used to assess the relationship between outstanding claims and claims payable for a life insurance company?

Q. What does the % of Change in Fair Value Change Account ratio indicate for a life insurance company?

Q. What does the Net Retention Ratio (%), in the context of Total Premium, First Premium, Single premium, and Renewal Premium, represent for a life insurance company?

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!