timed out BattleActs100

Calculating the RBC ratio (easy version)

myID_+ priorDate_+ record_+ WET_+ fadeFactor_

Calculate the RBC ratio and indicate the appropriate action/control level. (Don't enter as a decimal.)

  current score:
0.000

RBC ratio (with or without % sign)
COR (enter "-" if trend test not required)
Action or Control level (C/R/A/M) or "-"
C (or c): Company Action Level
R (or r): Regulatory Action Level
A (or a): Authorized Control Level
M (or m): Mandatory Control Level
Total Adjusted Capital (TAC) 1000
R0 charge 10
R1 charge 100
R2 charge 200
R3 charge 300
R4 charge 400
R5 charge 500
company net loss & LAE ratio 80%
company expense ratio 30%
policyholder dividend ratio 10%

1

RBC ratio
= TAC / ACL     (tackle this problem!)

2

RBC Capital Required
= R0 + [ R12 + R22 + R32 + R42 + R52 ](1/2)

3

ACL Capital
= 50% x (RBC Capital Required)

Decision Table



RBC Ratio (R) trend test COR action/control
R > 300% not required not required no action
200% ≤ R < 300% required COR ≤ 120% no action
200% ≤ R < 300% required COR > 120% CAL
150% ≤ R < 200% not required not required CAL
100% ≤ R < 150% not required not required RAL
70% ≤ R < 100% not required not required ACL
R < 70% not required not required MCL

Solution:
RBC Ratio 559%
COR -
action/level C
    RBC Capital Required 250,000
    ACL Capital 125,000