insolvency of insurance company


insolvency of insurance company
A depletion of assets to the extent that they are insufficient for the payment of the just debts and obligations of the company. 29 Am J Rev ed Ins § 116. An insurance company is not insolvent when the value of its property is greater than the amount of its liabilities and it is able to pay its debts when they mature, although the excess of the value of its property above its liabilities may be less than the par value of its stock. Shearer v Farmers' L. Ins. Co. (CA8 Mo) 262 F 861. Actuarial solvency of a mutual benefit company requires that the funds of the company on hand and the present value of future payments to be made by the members shall be equal to the accrued obligations and the present value of the insurance in force. Jenkins v Talbot, 338 Ill 441, 170 NE 735, 80 ALR 638, app dismd 283 US 782, 75 L Ed 1412, 51 S Ct 342.

Ballentine's law dictionary. . 1998.

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