A legal determination occurring when a managed care plan no longer has the financial reserves or other arrangements to meet its contractual obligations to patients and subcontractors
When a health plan has no money or other means to stay open and give health care to patients
This has both legal and accounting meanings, but describes a person, business or incorporation that while not bankrupt cannot meet certain standards of financial viability The BIA defines an insolvent person as one who cannot pay his or her debts as they fall due, has stopped paying his or her debts, or whose assets could not cover his or her debts
When one is not able to pay one's debts as they fall due The Insolvency Act may provide protection from an insolvent debtor's creditors, enabling them to put their affairs in order
In the case of insurance, insolvency means that companies do not have sufficient funds in their reserves to pay claims If a company appears to be at risk for insolvency, the Texas Department of Insurance (TDI) will advise the company to take measures to increase their reserve funds These measures can include such things as raising rates, adjusting the company's investment portfolio, and soliciting investment in the company If the company fails to improve its situation, the TDI can intervene by court order and take control of that company's operations If all else fails, the final step is liquidation Using this last resort, the TDI will dissolve the company and sell off all of its assets to pay the claims
Technically, the financial condition of an enterprise whose liabilities exceed its assets, or which is unable to pay its debts as they mature Financing an insolvent client requires specialized lending expertise, particularly if insolvency leads to bankruptcy Bankruptcy tends to be the path followed by insolvent companies, but it may actually open up alternative financing opportunities
A situation that occurs when an organization's assets or resources are not adequate to cover its debts and obligations
Insolvency is the state of not having enough money to pay your debts. companies on the brink of insolvency. Condition in which liabilities exceed assets so that creditors cannot be paid. It is a financial condition that often precedes bankruptcy. In the context of equity, insolvency is the inability to pay debts as they become due; insolvency under the balance-sheet approach means that total liabilities exceed total assets
The act of being insolvent - being unable to meet your obligations as they become due
(1) The inability of a business organization to pay its financial obligations as they come due (2) For an insurer, the inability to maintain capital and surplus above the minimum standard of capital and surplus required by law