A Property-Casualty (P-C) Insurance Firm Has Estimated the Following Risk-Based

A property-casualty (P-C) insurance firm has estimated the following risk-based capital charge for its individual risk classes: $\begin{array}{|c|c|c|}\hline \text { Risk } & \text { Description } & \text { RBC Charge } \\\hline \text { R0 } & \text { Affiliated P-C } & \$ 6.0 \text { million } \\\hline \text { R1 } & \text { Fixed-income assets } & \$ 2.0 \text { million } \\\hline \text { R2 } & \text { Common Stock } & \$ 1.0 \text { million } \\\hline \text { R3 } & \text { Reinsurance } & \$ 3.0 \text { million } \\\hline \text { R4 } & \text { Loss Adjustment Expense } & \$ 1.0 \text { million } \\\hline \text { R5 } & \text { Written Premiums } & \$ 2.0 \text { million } \\\hline \text { R6 } & \text { Hurricane } & \$ 1.0 \text { million } \\\hline \text { R7 } & \text { Earthquake } & \$ 0.5 \text { million } \\\hline \text { Total } & & \$ 16.50 \text { million } \\\hline\end{array}$ Is the firm adequately capitalized if it has total capital and surplus of $10 million?

A) No, its total risk-based capital charge is higher than $10 million.
B) No, its total risk-based capital charge is lower than $10 million.
C) Yes, its total risk-based capital charge is higher than $10 million.
D) Yes, its total risk-based capital charge is lower than $10 million.
E) No, its total risk-based capital charge is greater than 0.