Financial Risk Manager Part 2
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Which of the following statements is correct regarding capital requirements for insurance companies?
A
Basel II includes the regulation of banks and insurance companies in the three pillars.
B
The minimum capital requirement is likely to be higher than the solvency capital requirement for insurance companies.
C
The repercussion for violating the solvency capital requirement is likely liquidation and the transfer of company insurance policies to another firm.
D
The internal models approach to calculating the solvency capital requirement is similar to internal ratings based approach under Basel II in that the firm must calculate a VaR with a one-year time horizon.