2012 20 part c
Hi, Could you please explain when you state RBC growth uses gross premium? In the question, it's given NWP. I don't see they use gross premium in the calculation of RBC.
Could you please explain when you state RBC growth uses avg of the last three year over year data? I can't find the information in the wiki
Comments
The question does give the gross (i.e. direct and assumed) premium in the table. But you're right that it is not used to calculate a growth charge in any of the sample answers for part a, and I don't know why they don't have it. But had the growth charge been calculated, gross premium would need to be used to get the average growth ratio.
The second item is here in the wiki, and in the ensuing pop quiz F:
https://battleacts6us.ca/wiki6us/Odomirok.19-RBC#:~:text=The%20hard%20part%20of%20the%20calculation%20(and%20it%20really%20isn%27t%20that%20hard)%20is%20the%20value%20for%20(excess%20growth).%20Once%20you%20have%20that%2C%20the%20corresponding%20charge%20is%20easy%20using%20the%20above%20formulas.%20Here%27s%20a%20pop%20quiz%20that%20shows%20you%20how%20to%20do%20it.