nonadmitted asset

Definition of "nonadmitted asset"
  1. A type of asset that, due to legal constraints, is not considered in assessing an insurance company's fiscal health as it can't be expediently turned into cash without suffering a decrease in value
How to use "nonadmitted asset" in a sentence
  1. The expensive artwork owned by the insurance company is considered a nonadmitted asset.
  2. State laws require that nonadmitted assets are not included in an insurance company's compliance statement.
  3. It is important to differentiate between admitted and nonadmitted assets when interpreting an insurance company's financial statement.

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