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What You Should Know About Solvency.

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Solvency refers to a company’s ability to pay its debts as they come due. If a company is insolvent, it means that it cannot pay its debts. A company may be insolvent even if it is profitable. There are two types of insolvency: cash flow insolvency and balance sheet insolvency. Cash flow insolvency occurs when … Read more

Introduction to Allocated Loss Adjustment Expenses (ALAE).

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An insurance company’s Allocated Loss Adjustment Expenses (ALAE) are the expenses associated with investigating and settling policyholder claims. This includes the costs of claims adjusters, investigators, legal fees, and other related expenses. ALAE is a major factor in the company’s overall loss ratio. Which would not be a type of allocated loss adjustment expense? There … Read more