Surplus is defined as

Excess value of assets over liabilities
When turnover of the insurer is high
Excess value of liabilities over assets
Excess of liabilities

The correct answer is A. Excess value of assets over liabilities.

Surplus is the excess of assets over liabilities. It is a measure of the financial strength of an insurance company. A high surplus indicates that the company is financially healthy and has the resources to pay its claims.

Option B is incorrect because turnover is not a measure of financial strength. Turnover is the rate at which a company’s assets are converted into cash. A high turnover can be a sign of a healthy company, but it can also be a sign of a company that is selling its assets too quickly.

Option C is incorrect because liabilities are the debts of a company. An excess of liabilities over assets indicates that the company is in financial trouble.

Option D is incorrect because liabilities are the debts of a company, not the assets.