A. Every domestic insurer shall, on or prior to each March 1, which shall be known as the filing date, prepare and submit to the Insurance Commissioner a report of its RBC Levels as of the end of the calendar year just ended, in a form and containing such information as is required by the RBC Instructions, as adopted by the Commissioner by rule. In addition, every domestic insurer shall file its RBC Report with the NAIC if required by the Commissioner.
B. 1. A life and health insurer's or fraternal benefit society's RBC shall be determined in accordance with the formula set forth in the RBC Instructions, as adopted by the Commissioner by rule. The formula shall take into account, and may adjust for the covariance between, the following factors:
a.the risk with respect to the insurer's assets,
b.the risk of adverse insurance experience with respect to the insurer's liabilities and obligations,
c.the interest rate risk with respect to the insurer's business, and
d.all other business risks and such other relevant risks as are set forth in the RBC Instructions.
2. These factors shall be determined in each case by applying the factors in the manner set forth in the RBC Instructions.
C. 1. A property and casualty insurer's RBC shall be determined in accordance with the formula set forth in the RBC Instructions, as adopted by the Commissioner by rule. The formula shall take into account, and may adjust for the covariance between, the following factors:
a.asset risk,
b.credit risk,
c.underwriting risk, and
d.all other business risks and such other relevant risks as are set forth in the RBC Instructions.
2. These factors shall be determined in each case by applying the factors in the manner set forth in the RBC Instructions.
D. If a domestic insurer files an RBC Report which in the judgment of the Commissioner is inaccurate, then the Commissioner, after notice and opportunity for comment, shall adjust the RBC Report to correct the inaccuracy and shall notify the insurer of the adjustment. The notice shall contain a statement of the reason for the adjustment. An RBC Report so adjusted shall be referred to as an "Adjusted RBC Report".
Added by Laws 1997, c. 229, § 5, eff. July 1, 1997. Amended by Laws 2013, c. 269, § 5, eff. Nov. 1, 2013.
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