ABSTRACT
The pr inc ipa l goal of publ ic supervision and regulat ion of the
insurance industry is to safeguard claimants, pol icyholders , etc. from
the disastrous consequences of the insolvency of an insurer. Th is
requires arrangements for preventing, as far as possible, insurers
from becoming bankrupt . Ideally, ways and means should be found
to stop a company before it gets into too precarious a posi t ion, i f
possible while the assets st i l l exceed the liabili t ies, so that a l l the
commitments entered into can be fulfilled.
