A property-casualty insurance company has estimated the following required charges for its various risk classes (in millions):

Question:

a. What is the RBC charge as per the model recommended by the NAIC?
b. If the firm currently has $7 million in capital, what should be its surplus to meet the minimum capital requirement?

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Financial Institutions Management A Risk Management Approach

ISBN: 978-0071051590

8th edition

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

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Question Posted: Dec 17, 2015 05:07 AM

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A property-casualty insurance company has estimated the following required charges for its various risk classes (in millions):

Question:

2 Risk Description R0 Affiliated P/C R1 Fixed income R2 Common stock RBC Charge S2 Reinsurance 4 Loss adjustment espense R5 Written premiums Total $17

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a 2m 68557m 88557 mill...View the full answer

Financial Institutions Management A Risk Management Approach

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