An insurer sells 50,000 1-year policies at the beginning of the year. The expected claim cost per policy is $2,000 and an actuarially fair premium is charged. The standard deviation of the claim cost for the insurer is $40 million. Assume the insurer has a capital of $50 million. Would the company still be solvent if the realized loss is at the 1 percent VaR? Note that 5% VaR corresponds to that insurer loss payment is above its mean by 1.645 times of its standard deviation, O YES No