Section 375.1252

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 375

Effective - 28 Aug 2014   

  375.1252.  RBC report, filed when — contents — formula, how determined — adjusted RBC report required, when. — 1.  Every domestic insurer and every health organization shall, on or prior to each March first, prepare and submit to the director a report of its RBC level as of the end of the calendar year just ended, in a form and containing such information as is required by the RBC instructions.  In addition, every domestic insurer and every domestic health organization shall file its RBC report:

  (1)  With the NAIC in accordance with the RBC instructions; and

  (2)  With the chief insurance regulatory official in any state in which the insurer or health organization is authorized to do business, if such official has notified the insurer or health organization of its request in writing, in which case the insurer or health organization shall file its RBC report not later than the later of:

  (a)  Fifteen days from the receipt of notice to file its RBC report with that state; or

  (b)  The filing date.

  2.  A life and health insurer's RBC shall be determined in accordance with the formula set forth in the RBC instructions.  The formula shall take into account and may adjust for the covariance between:

  (1)  The risk with respect to the insurer's assets;

  (2)  The risk of adverse insurance experience with respect to the insurer's insurance liabilities and obligations;

  (3)  The interest rate risk with respect to the insurer's business; and

  (4)  All other business risks and such other relevant risks as are set forth in the RBC instructions.  

­

Such risks shall be determined in each case by applying the factors in the manner set forth in the RBC instructions.

  3.  A property and casualty insurer's RBC shall be determined in accordance with the formula set forth in the RBC instructions.  The formula shall take into account and may adjust for the covariance between:

  (1)  Asset risk;

  (2)  Credit risk;

  (3)  Underwriting risk; and

  (4)  All other business risks and such other relevant risks as are set forth in the RBC instructions.  

­

Such risks shall be determined in each case by applying the factors in the manner set forth in the RBC instructions.

  4.  A health organization's RBC shall be determined in accordance with the formula set forth in the RBC instructions.  The formula shall take into account and may adjust for the covariance between:

  (1)  Asset risk;

  (2)  Credit risk;

  (3)  Underwriting risk; and

  (4)  All other business risks and such other relevant risks as are set forth in the RBC instructions.  

­

Such risks shall be determined in each case by applying the factors in the manner set forth in the RBC instructions.

  5.  Insurers and health organizations should seek to maintain capital above the RBC levels required by sections 375.1250 to 375.1275, as such additional capital helps to secure an insurer against various risks inherent in, or affecting, the business of insurance and not accounted for or partially measured by the risk-based capital requirements contained in sections 375.1250 to 375.1275.

  6.  If a domestic insurer or domestic health organization files an RBC report which in the judgment of the director is inaccurate, then the director shall adjust the RBC report to correct the inaccuracy and shall notify the insurer or health organization of the adjustment.  The notice shall contain a statement of the reason for the adjustment.  An RBC report as so adjusted is referred to as an "adjusted RBC report".

­­--------

(L. 1993 H.B. 709 § 2, A.L. 1996 S.B. 759, A.L. 2014 H.B. 1968)