__________ is an amount in excess of the value of insurers assets over the amount of liabilities.

Question

Question: __________ is an amount in excess of the value of insurers assets over the amount of liabilities. This amount is prescribed by IRDA.

Options:

1.  Profit
2.  Goodwill
3.  Margin
4.  Solvency margin

Answer 1

4. Solvency margin

Solvency margin is an amount in excess of the value of insurers assets over the amount of liabilities. This amount is prescribed by IRDA.

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More information:

The solvency margin is a minimum amount in excess of value of insurers assets over the liabilities.

It is set by regulators (IRDA) and insurers are required to maintain a required Solvency Margin as per Section 64VA of the Insurance Act 1938.