Expanded R0 Formula for Market Method

I do not believe you would be required to memorize this. There are too many other important RBC topics. It's possible you'd be asked to calculate R₀ for a simple case and the examples on the main page are representative of that.

R0 (common stocks) using market method

= A + B where A = min[ affiliate RBC x (ownership% of common stock) , (statutory surplus of affiliate) x (ownership% of common stock) If (affiliate RBC) x ownership% of common stock > (value of common stock as recorded by reporting entity) then B = (value of common stock as recorded by reporting entity) - A Otherwise calculate B like this: B = MAX[ (value of common stock as recorded by reporting entity) - 22.5% x (pro-rata statutory surplus of affiliate),      (affiliate RBC) x (ownership% of common stock ) - A