What term refers to cash or securities deposited with the state treasury to demonstrate financial capability for insurance obligations?

The term that refers to cash or securities deposited with the state treasury to demonstrate financial capability for insurance obligations is known as a Financial Solvency Deposit. This term is specifically used to indicate an insurer's commitment to maintaining enough financial resources to meet its future policyholder obligations. By requiring such deposits, regulatory bodies ensure that insurers have financial stability and can cover claims, thus protecting consumers.

Public Custody does not accurately describe the nature of these deposits since it generally pertains to assets held for public entities rather than specifically indicating financial security related to insurance. The Insurance Reserve Fund is a term more associated with funds set aside to pay future claims and obligations rather than directly referring to deposits made to state treasury for solvency. A Collateral Account typically refers to assets pledged as security for a specific obligation rather than a mandated deposit to demonstrate financial capability.

Understanding these distinctions clarifies the unique role of the Financial Solvency Deposit in the context of regulatory compliance for insurers.