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Explain the interrelationship between reserves recorded by the company and the company's RBC ratio. If two company have indentical assets and obligation, but the management of Company A sets its reserves lower than the reserves set by company B, which company will have the more favorable RBC ratio? How does the role of the appointed actuary help the regulator in evaluating the relative strength or weakness of each company's financial position? How might the role of the appointed actuary role be expanded to assist the regulator in evaluating capital adequacy?

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Financial Management, Finance

Category:- Financial Management
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