All of the following define insolvency EXCEPT?

Prepare for the PSI Life, Accident, Health Exam. Engage with flashcards and multiple-choice questions, each with hints and explanations for a successful test experience!

Insolvency refers to a financial state where an entity is unable to meet its long-term debts or financial obligations. This concept is crucial in insurance, as it impacts the ability of an insurer to pay claims.

The definition of insolvency can include various conditions such as impairment of minimum capital, inability to meet financial obligations, and inability to fully reinsure risks. These conditions highlight the challenges that organizations face when they cannot maintain sufficient financial resources to cover their liabilities.

Revocation by the commissioner, however, does not define insolvency. Instead, it is an action taken by regulatory authorities when an insurer is deemed to be operating contrary to the laws or regulations, which may be a consequence of insolvency but is not a defining characteristic of it. Thus, it is not a condition that outlines the state of being insolvent.

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