Interest RIsk
It is mentioned that RBC does not encapsulate interest rate risk in 2014-2_Fall (18), but then it appears as though RBC does capture interest rate risk according to the answer of the first battlecard for R1. Is the distinguishing thing here that r1 captures interest rate risk and default risk for the fixed income investments while the 2014-2_Fall (18) question referred to interest rate risk to the insurance company as a whole?
Comments
I don't understand what you refer to with "first battlecard for R1." However, see footnote 3a of the exam question list. It states that part c of this question is outdated, because interest rate risk and cat risk are now part of RBC.