R0 charge for preferred stock investments in Insurance Subsidiaries is calculated as which expression?

• A. min(pro rata share of excess RBC, book/ adjusted carrying value of preferred stocks)
• B. max(pro rata share of excess RBC, book/ adjusted carrying value of preferred stocks)
• C. min( affiliate RBC, statutory surplus) x ownership %
• D. min(pro rata share of new excess RBC, book/ adjusted carrying value of preferred stocks)

Answer: (A)