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Old 11-21-2001, 11:36 AM
zapped zapped is offline
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they give the formula for RBC=
[(c1 + c3)^2 + c2^2 + c4 + c0]^.5

shouldn't this be RBC=
[(c1 + c3)^2 + c2^2]^.5 + c4 + c0 ?
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Old 11-21-2001, 12:08 PM
MetsMan MetsMan is offline
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The 2000 NAIC Life Risked Based Capital Report gives the formula (in LR025) as:
c0+c4a+[(c1+c3a)^2+c2^2+c3b^2+c4b^2]^.5
The 'b' subscripts relate to a breakout of health insurance.

Leaving out the health components, your second definition would seem correct.
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