A property-casualty (P-C)insurance firm has estimated the following risk-based capital charge for its individual risk classes:

\begin{array}{l}\begin{array}{lll}Risk\\R0 \\R 1 \\R 2 \\R3\\R4\\R5\\R6\\R7\\Total\end{array}\begin{array}{l}\text {Description}\\\text { AfflliatedP-C } \\\text { Fixed-income assets } \\\text { Common Stock } \\\text { Reinsurance } \\\text { Loss Adjustment Expense } \\\text { Written Premiums } \\\text { Humicane } \\\text { Earthquake }\\\\\end{array}\begin{array}{l}\text {RBC Charge}\\\$ 6.0 \text { million } \\\$ 2.0 \text { million } \\\$ 1.0 \text { million } \\\$ 3.0 \text { million } \\\$ 1.0 \text { million } \\\$ 2.0 \text { million } \\\$ 1.0 \text { million } \\\$ 0.5 \text { million }\\\$ 16.50 \text { million }\\\end{array}\end{array}

Using the model recommended by the National Association of Insurance Commissioners (NAICs),what is the total risk-based capital charge for the P-C firm?
A)$4.36 million.
B)$10.00 million.
C)$10.50 million.
D)$12.50 million.

Under Market Value Accounting Methods,FIs

Multiple Choice

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