The risk-based capital charges for a property-casualty insurance company are provided below. The insurer has total capital and surplus of $122.54 M.

Risk RBC Charge ($ millions)

Asset risk--OBS and affiliated P&C (R0) $ 4.63

Asset risk--fixed income (R1) 3.76

Asset risk--equity (R2) 7.83

Credit risk (R3) 6.23

Underwriting risk--premium (R4) 45.65

Underwriting risk--reserve (R5) 28.43

Catastrophe risk (Rcat) 56.14

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.

c. How much capital must the insurer raise to comply with the regulatory requirement?