What defines "financial solvency" for insurers in Illinois?

Financial solvency for insurers in Illinois is defined by the capacity to meet long-term obligations and regulatory capital requirements. This means that an insurer must have sufficient financial resources to cover its claims and obligations over time while also adhering to the capital requirements set by regulatory authorities. This includes maintaining adequate reserves and surplus to ensure that the insurer can remain operational and meet its commitments to policyholders.

In contrast, the ability to pay short-term debts is a narrower focus and does not encompass the overall long-term financial health necessary for an insurer's stability. The total amount of policies written does not indicate financial solvency, as an insurer could write many policies but still lack the funds to handle claims. Similarly, customer satisfaction is important for business operations and can influence success, but it does not directly relate to an insurer's financial stability or solvency. Therefore, the capacity to meet long-term obligations and regulatory capital requirements is essential in determining the financial solvency of an insurer.