RBC Charges (R_{1} & R_{2}  Fixed Income & Equity Asset Risk)
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Calculate the R_{1} RBC charge for fixed income assets and the R_{2} charge for equity assets.
Fixed Income Investments
item 
amount 
amount (TOP 10) 
# issuers 
RBC factor 
cash & equivalents 
138,600 
55,400 
140 
0.0030 
mortgage bonds / coll. loans 



0.0500 
U.S. government 



0 
class 01 unaffiliated bonds 



0.0030 
class 02 unaffiliated bonds 



0.0100 
class 03 unaffiliated bonds 



0.0200 
class 04 unaffiliated bonds 



0.0450 
class 05 unaffiliated bonds 



0.1000 
class 06 unaffiliated bonds 



0.3000 
Equity Investments
item 
amount 
amount (TOP 10) 
# issuers 
RBC factor 
OAU ^{1} Common Stock 
138,600 
55,400 
 
0.1500 
Schedule BA assets 


 
0.2000 
real estate 


 
0.1000 
class 01 unaffiliated Prfd. Stck. 


 
0.0030 
class 02 unaffiliated Prfd. Stck. 


 
0.0100 
class 03 unaffiliated Prfd. Stck. 


 
0.0200 
class 04 unaffiliated Prfd. Stck. 


 
0.0450 
class 05 unaffiliated Prfd. Stck. 


 
0.1000 
class 06 unaffiliated Prfd. Stck. 


 
0.3000 
^{1} OAU = Other Admitted Unaffiliated (Common Stock)
R_{1}
= basic charge + BSC + ACC
basic charge
= SUM [ (asset values subject to basic charge) x (RBC factor) ]
BSC
= BSF x (total R_{1} charges for bonds subject to BSF charge)
ACC
= SUM [ (asset values subject to ACC for TOP 10 issuers) x (RBC factor) ]
R_{2}
= basic charge + ACC
basic charge
= SUM [ (asset values subject to basic charge) x (RBC factor) ]
ACC
= SUM [ (asset values subject to ACC for TOP 10 issuers) x (RBC factor) ]
BSF
# of issuers 
weights 
first 50 
2.5 
next 50 
1.3 
next 300 
1.0 
> 400 
0.9 
Solution:
R_{1} 

basic charge 

BSC 

BSF 

ACC 

BSC = Bond Size Charge (exclude cash, mortgage bonds / collateral loans, government bonds)
BSF = Bond Size Factor
ACC = Asset Concentration Charge (exclude cash, government bonds, class 01, class 06)
ACC = Asset Concentration Charge (exclude class 01, class 06)