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

Posted under IC 89 Management Accounting

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.

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Q. What does Available Solvency Margin (ASM) represent in insurance business?
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Q. Which form is used for the valuation of assets in the computation of Solvency Margin for insurers in India?

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