Capitalization or Leverage

Measures the exposure of a company's surplus to various operating and financial practices. A highly leveraged, or poorly capitalized, company can show a high return on surplus, but might be exposed to a high risk of instability.

See Also: Carrier / Insurance Company / Underwriter; Cash Value; Cash surrender value; Casualty; Captive Agent; Capital; Capitation; Cap; Crop Insurance; Consequential Loss (or Damage);

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