Hi Folks, Could someone please explain the meaning of second paragraph on this page? Basically I am not clear with the fact that their is a certain level of capital requirement which must be covered by surplus within the long term fund? I have worked in annuity business before. There the LTF is divided into Assigned fund Non assigned fund I think we used to hold component C as surplus in assigned fund. I guess atleast 1%of the Bel has to be surplus in assigned fund. Is this something related to this? Thanks in advance.
