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.

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It may be stated as a minimum dollar amount or by reference to a solvency ratio or a solvency margin.

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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.