Margin of solvency

A company shall be deemed to be insolvent– (a) in the case of a company carrying on only long-term insurance business, if the value of its admissible assets exceeds its liabilities by less than $200,000; (b) in the case of a company carrying on only general insurance business, if its admissible assets exceed its liabilities by less than twenty per cent of its net premium income in respect of its general insurance business in its last financial year; or (c) in the case of an existing company carrying on both long term insurance business and general insurance business, if the excess of its total admissible assets over its total liabilities is less than the total amounts specified in paragraphs (a) and (b).