An insurer is considered to be solvent if it is able to do what?

An insurer is considered solvent when it can meet its financial obligations and pay claims. This means that the company has sufficient assets and cash flow to cover its liabilities, including the claims that policyholders may make. Solvency is a critical aspect in the insurance industry as it indicates the insurer's ability to operate effectively and fulfill its promises to customers. When an insurer is solvent, it assures policyholders that their claims will be paid and that the company is financially healthy.

In contrast, strategies such as extensive marketing campaigns, gaining more clients than competitors, or expanding operations into other states do not directly relate to the financial stability of the insurance company. While these actions may contribute to the business's growth and market presence, they do not inherently ensure that the insurer will have the resources available to pay claims or meet other financial obligations.