RP for Collateral Deficiency - credit allowed for net recoverables

Is it correct to say that the formula for CR^63(recov) could be simplified to Collateral Provided by Reinsurer/Collateral Requirement Percentage?

For the example in the wiki it would simply be 36/.30 = 120. This is the same result.

I think the logic behind this is that the credit determines the maximum amount of recoverables for which the collateral provided by the reinsurer meets the required percentage. The reporting entity would then include a provision for any amount above what regulators determine is the reasonable amount of recoverables for the collateral provided (which is what the RP for Collateral Deficiency represents).

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