Which RBC level corresponds to a 70%-100% ratio range?

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Multiple Choice

Which RBC level corresponds to a 70%-100% ratio range?

In RBC, regulatory action levels are defined by where the insurer’s capital ratio sits relative to the authorized control level. The 70% to 100% band is the range that corresponds to the Authorized control level. Being in this range means the company is still within a relatively safe capital position, but regulators have discretionary authority to intervene under the authorized control provisions if the ratio trends lower. As the ratio falls below 70%, the regime moves to more stringent action levels (company action, regulatory action, etc.), indicating increasing distress.

In RBC, regulatory action levels are defined by where the insurer’s capital ratio sits relative to the authorized control level. The 70% to 100% band is the range that corresponds to the Authorized control level. Being in this range means the company is still within a relatively safe capital position, but regulators have discretionary authority to intervene under the authorized control provisions if the ratio trends lower. As the ratio falls below 70%, the regime moves to more stringent action levels (company action, regulatory action, etc.), indicating increasing distress.

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