Surplus Adequacy

Written by  //  June 24, 2011  //  Insurance Glossary: N-S, Insurance Terms  //  Comments Off on Surplus Adequacy

Surplus adequacy is a measure of whether a company’s assets in excess of liabilities are sufficient to pay your benefits even if an unexpected situation occurs. An example would be a very large and rapid increase or decrease in interest rates. For this reason, Answer Financial only offers products from companies rated B+ (very good) or better by A.M. Best, an independent rating agency.

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