Current Liquidity (IRIS)

The sum of cash, unaffiliated invested assets and encumbrances on other properties to net liabilities plus ceded reinsurance balances payable, expressed as a percent. This ratio measures the proportion of liabilities covered by unencumbered cash and unaffiliated investments. If this ratio is less than 100, the company's solvency is dependent on the collectibility or marketability of premium balances and investments in affiliates. This ratio assumes the collectibility of all amounts recoverable from reinsurers on paid and unpaid losses and unearned premiums.

See Also: Coverage; Conditional Reserves; Commercial Lines; Combined Ratio After Policyholder Dividends; Class 3-6 Bonds (% of PHS); Chartered Property and Casualty Underwriter (CPCU); Change in Policyholder Surplus (IRIS); Change in Net Premiums Written (IRIS); Ceded Reinsurance Leverage; Casualty Insurance;

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