In a recent paper, Huang (2020) proposes a contingent claim model of financial grey rhino under capital regulation. A preliminary result is that stringent capital regulation enhances the insurer's survival, thereby contributing to insurance stability. In this note, we critically evaluate her objective setting and refine the comparative statics by developing a contingent claim utility model. We show that stringent capital regulation helps policyholder protections, but at the expense of the insurer's equity return, thus adversely affecting insurer survival.