In captive insurance, capital has one of three different meanings: the amount initially needed to...
statutory capital
Statutory capital is the amount of capital and/or surplus required in order for an insurance company to obtain and retain a license to do business.
Additional Information
It may be stated as a minimum dollar amount or by reference to a solvency ratio or a solvency margin.
Related Terms
Solvency ratio refers to a statutory ratio test, which is usually net written premiums divided by...
The solvency margin is the insurer's unimpaired surplus as a percent of outstanding loss reserve.
