Ultimate access to all questions.
Upgrade Now 🚀
Sign in to unlock AI tutor
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.
