Difference between revisions of "RBC"
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===Alice's 1st Day=== | ===Alice's 1st Day=== | ||
| − | On Alice's first day of work as an actuarial intern, her mean boss dumped a stack of financial statements on her desk and told her to find out whether the company was healthy. But before she could ask him anything, he was already down the hall issuing orders to someone else. ''"Jackass,"'' she thought. Poor Alice had no idea what to do. | + | On Alice's first day of work as an actuarial intern, her mean boss dumped a stack of financial statements on her desk and told her to find out whether the company was healthy. But before she could ask him anything, he was already down the hall issuing orders to someone else. ''"Jackass,"'' she thought. Poor Alice had no idea what to do. Fortunately the intern in the next cubicle overheard and peeked over the cubicle wall. |
| − | + | : "Just calculate the RBC ratio," her new friend said. "It's all in Odomirok. He does that to everyone on their first day, but I can help you. We''ll <span style="color: red;">'''tackle'''</span> it together." | |
| + | |||
| + | So, Alice and her cubicle-mate spent an hour pulling the relevant information from the financial statements and here is what Alice learned. | ||
:{| class="wikitable" | :{| class="wikitable" | ||
|- | |- | ||
| − | | | + | | '''Formula''': RBC ratio = TAC / ACL ''(sounds like <span style="color: red;">'''tackle'''</span>)'' |
|} | |} | ||
| + | |||
| + | :: '''TAC''' = Total Adjusted Capital = 31,024,000 | ||
| + | :: '''ACL''' = Authorized Control Level = 5,552,182 | ||
| + | |||
| + | : ==> RBC ratio = 31,024,000 / 5,552,182 = 559% | ||
| + | |||
| + | |||
Revision as of 16:02, 21 November 2018
Contents
Pop Quiz
BattleTable
Based on past exams, the main things you need to know (in rough order of importance) are:
reference part (a) part (b) part (c) part (d) E (2018.Spring #18) calculate:
- change in RBC chargerapid premium growth:
- impact on RBCE (2017.Fall #17) calculate:
- RBC ratiocalculate:
- RBC action levelE (2017.Fall #18) financial health:
- use of RBC ratiosR0 RBC charge:
- difference vs R1,2,3,4,5RBC vs IRIS:
- similarity & differenceE (2017.Spring #19) calculate:
- total RBCcalculate:
- RBC RAL1RAL actions:
- insurer & regulatorE (2016.Fall #16) RBC risk categories:
- identify 2RBC purpose:
- for regulatorE (2016.Fall #17) rbc require E (2015.Fall #17) r1r2 E (2015.Spring #19) written E (2015.Spring #25) multiple areas E (2014.Fall #18) multiple areas error in exam question see pg 607 in pdf E (2014.Spring #20) multiple areas E (2013.Fall #21) rbc require E (2012.Fall #14) see Odo 8-9 asset risk of RBC E (2012.Fall #20) calc RBC see IRIS RBC vs IRIS growth charge E (2012.Fall #24) multiple papers (Bloom's Taxonomy)
- 1 RAL stands for Regulatory Action Level
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In Plain English!
Alice's 1st Day
On Alice's first day of work as an actuarial intern, her mean boss dumped a stack of financial statements on her desk and told her to find out whether the company was healthy. But before she could ask him anything, he was already down the hall issuing orders to someone else. "Jackass," she thought. Poor Alice had no idea what to do. Fortunately the intern in the next cubicle overheard and peeked over the cubicle wall.
- "Just calculate the RBC ratio," her new friend said. "It's all in Odomirok. He does that to everyone on their first day, but I can help you. Well tackle it together."
So, Alice and her cubicle-mate spent an hour pulling the relevant information from the financial statements and here is what Alice learned.
Formula: RBC ratio = TAC / ACL (sounds like tackle)
- TAC = Total Adjusted Capital = 31,024,000
- ACL = Authorized Control Level = 5,552,182
- ==> RBC ratio = 31,024,000 / 5,552,182 = 559%
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BattleCodes
Memorize:
Conceptual:
Calculational:
