timed out BattleActs

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
Rcat charge 999
company net loss & LAE ratio 80%
company expense ratio 30%
policyholder dividend ratio 10%

1

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

2a

RBC Capital Required
= R0 + [ R12 + R22 + R32 + R42 + R52 + Rcat2 ](1/2)   +   (operational risk)

2b

operational risk
= 3% x ( R0 + [ R12 + R22 + R32 + R42 + R52 + Rcat2 ](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