1. The capital requirement for hail risk shall be equal to the following:
where:
(a) the sum includes all possible combinations (r,s) of the regions set out in Annex VIII;
(b) CorrHL(r,s) denotes the correlation coefficient for hail risk for region r and region s as set out in Annex VIII;
(c) SCR(hail,r) and SCR(hail,s) denote the capital requirements for hail risk in regions r and s respectively;
(d) SCR(hail,other) denotes the capital requirement for hail risk in regions other than those set out in Annex XIII.
2. For all regions set out in Annex VIII, the capital requirement for hail risk in a particular region r shall be the larger of the following capital requirements:
(a) the capital requirement for hail risk in region r according to scenario A;
(b) the capital requirement for hail risk in region r according to scenario B.
3. For all regions set out in Annex VIII, the capital requirement for hail risk in a particular region r according to scenario A shall be equal to the loss in
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