Problem 24a
Should the answer for 10% of Held Reserves be 40 rather than what the answer key suggests as being correct, 25?
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Should the answer for 10% of Held Reserves be 40 rather than what the answer key suggests as being correct, 25?
Comments
Yes, this is a typo. The other examples they reference (5% of held and 15% of held) are correct.
When selecting/determining a materiality standard based on the next RBC action level do you need to contemplate the trend test at all? i.e. if the company's current RBC ratio is 350% and they have a COR of 125% would surplus reduction to a 250% RBC ratio be a reasonable materiality standard given that it would lead to a Company Action Level?
I don't believe you need to contemplate the trend test in the example you gave (when it relates to materiality). The trend test is more for the RBC Action Levels.