What is the RBC factor for other long-term invested assets other than collateral loans?

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Multiple Choice

What is the RBC factor for other long-term invested assets other than collateral loans?

RBC uses risk weights assigned to asset classes to convert asset values into an asset risk component. For other long-term invested assets, excluding collateral loans, the assigned weight is 0.2, meaning 20% of that asset value contributes to the asset risk in the RBC calculation. This weight reflects a moderate level of risk: these are long-term, relatively illiquid investments, but not as risky as collateral loans. The asset risk component is computed by multiplying the asset amount by this factor and summing across categories. The other weights would either underestimate or overstate the risk for this category.

RBC uses risk weights assigned to asset classes to convert asset values into an asset risk component. For other long-term invested assets, excluding collateral loans, the assigned weight is 0.2, meaning 20% of that asset value contributes to the asset risk in the RBC calculation. This weight reflects a moderate level of risk: these are long-term, relatively illiquid investments, but not as risky as collateral loans. The asset risk component is computed by multiplying the asset amount by this factor and summing across categories. The other weights would either underestimate or overstate the risk for this category.

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