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

A property-casualty (P-C) insurance firm has estimated the following risk-based capital charge for its individual risk classes: $\begin{array}{l}\begin{array}{lll}Risk\\R0 \\R 1 \\R 2 \\R3\\R4\\R5\\R6\\R7\\Total\end{array}\begin{array}{l}\text {Description}\\\text { AfflliatedP-C } \\\text { Fixed-income assets } \\\text { Common Stock } \\\text { Reinsurance } \\\text { Loss Adjustment Expense } \\\text { Written Premiums } \\\text { Humicane } \\\text { Earthquake }\\\\\end{array}\begin{array}{l}\text {RBC Charge}\\\$ 6.0 \text { million } \\\$ 2.0 \text { million } \\\$ 1.0 \text { million } \\\$ 3.0 \text { million } \\\$ 1.0 \text { million } \\\$ 2.0 \text { million } \\\$ 1.0 \text { million } \\\$ 0.5 \text { million }\\\$ 16.50 \text { million }\\\end{array}\end{array}$

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.