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RBC Charges (R3 - Credit Risk)

myID_+ priorDate_+ record_+ WET_+ fadeFactor_
Calculate the R3 RBC charge for credit risk.

  current score:
0.000

R3 total RBC charge
   non-invested asset charge
   reinsurance recoverable charge
   health credit charge
R4: Reserve Risk portion of U/W Risk
R4 RBC charge 2,397
* Assume this insurer has no health credit risk.
Credit-Related Assets
NON-INVESTED ASSETS amount RBC factor
   investment income due & accrued 13,789 0.01
   amounts receivable related to uninsured plans 0.05
   federal income tax recoverable 0.00
   guaranty funds receivable or on deposit 0.05
   recoverable (parents/subs/affiliates) 0.05
   aggregate write-ins for other than invested assets 0.05
REINSURANCE RECOVERABLES RBC Charge n/a
   Schedule F, Part, Col (35)
   →Credit Risk on Collateralized Recoverables		 n/a
   Schedule F, Part, Col (36)
   →Credit Risk on Uncollateralized Recoverables		 n/a

R3

=   (non-invested assets charge)   +   (reinsurance recoverables charge)   +   (health credit charge)

Note 1

RBC charge for reinsurance recoverables is the sum of:
   → Schedule F, Part 3, Column (35): Credit Risk on Collateralized Recoverables
   → Schedule F, Part 3, Column (36): Credit Risk on Uncollateralized Recoverables

Note 2

Allocation of basic R3 charge for reinsurance recoverables:

    R4 > (non-invested assets charge) + (1/2)x(basic reins. recovs. charge) → allocate   50% of basic charge to R3
    R4 ≤ (non-invested assets charge) + (1/2)x(basic reins. recovs. charge) → allocate 100% of basic charge to R3
Solution:
R3
   non-invested assets charge
   reinsurance recoverables charge
   health credit charge 0

basic reins. recovs. charge (without allocation)
allocation of basic reins. recovs. charge to R3
   R4 (given)
   (non-invested assets charge) + (1/2)x(basic reins. recovs. charge)


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