Assume Superior Insurance Company (a Property Casualty company) has the following data for 12/31/2019: Total Assets = $190M o Fixed Income assets = $120M o Equity assets = $50M Total liabilities= $180M o Loss Reserves = $140M o Unearned premium reserves = $40M Premiums for calendar year 2019 = $50M Assume that for RBC purposes: RO = 0 R1 factor for its blend of fixed income assets = 5% R2 factor for equity assets= 20% R3=0 R4 factor for underwriting risk, loss reserves = 15%, Unearned Premium reserves = 10% R5 factor for underwriting risk, premiums= 30% 1. What is the Authorized Control Level for Superior for year-end 2019? 2. What is Total Capital at 12/31/19? 3. What is the RBC Ratio? 4. What do RBC rules then require of the company? Of the state insurance commissioner? Assume that a second company Farmington Woods Insurance Company, is absolutely identical in all respects, except that it has a more optimistic actuary, who has decided to set the loss reserves at $120M rather than $140M. 5. What is the ACL for Farmington Woods? 6. What is the RBC ratio? 7. What do RBC rules then require of Farmington Woods? Of the state insurance commissioner? 8. Which company is financially stronger? What does this say about using the RBC system to judge relative financial strength of insurers