What are assets that exceed an insurer's liability for reported losses and expenses called?

The assets that exceed an insurer's liability for reported losses and expenses are commonly referred to as "surplus." In the context of insurance, the correct answer, paid-in capital, represents the amount of capital that has been paid into the company by investors or shareholders in exchange for shares of the company. This paid-in capital is a significant component of the insurer's financial structure, as it provides a cushion for potential claims and ensures the company can meet its liabilities.

Paid-in capital is essential for maintaining the insurer's solvency and financial strength, allowing the insurer to obligate itself to settle future claims. Unlike other forms of capital such as capital stock, which refers more broadly to the company's equity base, or excess investment, which might imply additional returns on investments rather than a robust financial position, paid-in capital specifically reflects the invested resources that help support ongoing operations and obligations. This level of funding is crucial for financial stability in the insurance industry, particularly in times of high claim activity or unexpected financial challenges.