1. A propertycasualty insurance company has estimated the following required charges for its various risk classes (in...

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1. A property–casualty insurance company has estimated the following required charges for its various risk classes (in millions):

Risk Description RBC Charge R0 Affiliated P/C $ 2 R1 Fixed income 3 R2 Common stock 4 R3 Reinsurance 3 R4 Loss adjustment expense 2 R5 Written premiums 3 Total $17 What is the RBC charge per the model recommended by the NAIC?

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