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The combination of capital and surplus is the amount that an insurance company’s assets exceed its liabilities. It is the amount above what a company expects to pay out for medical claims, expenses, taxes, and other obligations. Insurers are legally required to maintain minimum levels of capital and surplus to ensure that they will be able to meet their financial obligations to policyholders.
Source: Annual or quarterly financial statements filed with the National Association of Insurance Commissioners or the Division of Financial Regulation.
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