Question

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

Using the model recommended by the National Association of Insurance Commissioners (NAIC), what is the total risk-based capital charge for the P-C firm?

A. $4.36 million.

B. $10.00 million.

C. $10.36 million.

D. $12.50 million.

E. $15.00 million.

Answer

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