The risk-based capital charges for a life insurance company are provided below. The insurer has total capital and surplus of $98.54 M.

Risk RBC Charge ($ millions)

Asset risk--affiliate (C0) $ 4.50

Asset risk--other investments (C1o) 3.27

Asset risk--common stock (C1cs) 12.32

Insurance risk (C2) 17.80

Interest rate risk (C3a) 11.35

Health credit risk (C3b) 3.21

Market risk (C3c) 7.24

Business risk (C4a) 7.65

Health business risk (C4b) 0.76

a. Calculate the (i) risk-based capital (RBC) charge and (ii) RBC level for the insurance company.

b. What supervisory action level applies to this insurer? Support your response with the calculation results from a.