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Use the following information, Preferably someone with some sort of Actuarial Experience Assume Storrs Insurance Company (a Property Casualty company) has the following data for
Use the following information, Preferably someone with some sort of Actuarial Experience
Assume Storrs Insurance Company (a Property Casualty company) has the following data for 12/31/2016:
- Total Assets = $90M
- Fixed Income assets = $60M
- Equity assets = $20M
- Total liabilities= $75M
- Loss Reserves = $45M
- Unearned premium reserves = $25M
- Premiums for calendar year 2016 = $30M
Assume that for RBC purposes:
- R0 = 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%
- What is the Authorized Control Level (ACL) for Storrs for year-end 2016?
- What is Total Capital at 12/31/16?
- What is the RBC Ratio?
- What do RBC rules then require of the company? Of the state insurance commissioner?
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