The Collaborative International Dictionary of English v.0.48:

Insolvency \In*sol"ven*cy\, n.; pl. Insolvencies. (Law)
      (a) The condition of being insolvent; the state or
          condition of a person who is insolvent; the condition
          of one who is unable to pay his debts as they fall
          due, or in the usual course of trade and business; as,
          a merchant's insolvency.
      (b) Insufficiency to discharge all debts of the owner; as,
          the insolvency of an estate.
          [1913 Webster]

   Act of insolvency. See Insolvent law under Insolvent,
      a.
      [1913 Webster]