Surplus debenture

{
  "id": "MLC-T-INS-003250",
  "term": "Surplus debenture",
  "field": "Insurance and risk management",
  "definition": "A type of debt instrument issued by an insurance company that is subordinate to policyholder obligations and general creditors. These debentures are considered part of an insurer's statutory surplus for regulatory purposes, enhancing its financial strength. Interest payments on surplus debentures are typically contingent on the insurer's financial performance and regulatory approval.",
  "url": "https://mlchart.com/terminology/insurance/surplus-debenture/"
}