Surplus is defined as

A. Excess value of assets over liabilities

B. When turnover of the insurer is high

C. Excess value of liabilities over assets

D. Excess of liabilities

Answer: Option A

Solution(By Examveda Team)

Surplus is defined as Excess value of assets over liabilities. A surplus is the amount of an asset or resource that exceeds the portion that is utilized. A surplus is used to describe many excess assets including income, profits, capital, and goods.