solvency

Definition

The ability of an insurer to cover their liabilities and meet the financial requirements of doing insurance business.

Use solvency in a sentence

They had a lot of solvency and I trusted them so I was not worried at all about our business and my future.

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After two years the company was finally able to pay all of its bills and afford insurance, reaching full solvency.

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Thankfully for Norma and Gene, her insurance company was prestigious and professional enough to guarantee solvency with her automobile collision claim.

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total admitted assets free asset ratio (FAR)