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SDM-100-13: Risk-based capital formula

on Sun Feb 11, 2018 8:56 am
Hi,

It is my understanding that RBC ratio = TAC / ACL, where TAC = statutory capital + regulatory surplus and ACL can be derived using the ''special formulas''.

However, we also have that TAC = statutory capital + asset valuation reserve + 1/2 policyholder dividend.

On question 11 of the practice questions set for SDM-100-13, there seems to be a typo since we are saying in the solutions that RBC = TAC / (statutory capital + asset valuation reserve + 1/2 policyholder dividend).

Has anyone seen this ?
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Re: SDM-100-13: Risk-based capital formula

on Wed Feb 14, 2018 2:18 pm
This was a typo (that accidentally got carried into the 2018 version of the questions). It has now been fixed. Thanks for pointing it out! (I was really just testing you Smile
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