20-488.01. Risk-based capital reports

A. On or before the later of March 1 or its annual statement filing due date, each domestic insurer shall annually prepare and submit to the director a report of the insurer's RBC levels as of the end of the previous calendar year. The RBC report shall be in a form and shall contain that information that is required by the RBC instructions. Each domestic insurer shall file its RBC report with both:

1. The national association of insurance commissioners in accordance with the RBC instructions.

2. The insurance director in any state in which the insurer is authorized to transact insurance business on the written request of the insurance director. The insurer shall file its RBC report not later than fifteen days after receiving notice to file its RBC report with that state or the filing date specified in this subsection, whichever is later.

B. A life or health insurer's RBC shall be determined according to the formula set forth in the RBC instructions. The formula shall take into account and may adjust for the covariance between the following risks that are determined in each case by applying the factors in the manner set forth in the RBC instructions:

1. The risk with respect to the insurer's assets.

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

3. The interest rate risk with respect to the insurer's business.

4. All other business risks and any other relevant risks that are set forth in the RBC instructions.

C. A property or casualty insurer's RBC shall be determined according to the formula set forth in the RBC instructions. The formula shall take into account and may adjust for the covariance between the following risks that are determined in each case by applying the factors in the manner set forth in the RBC instructions:

1. Asset risk.

2. Credit risk.

3. Underwriting risk.

4. All other business risks and any other relevant risks that are set forth in the RBC instructions.

D. A health organization's RBC shall be determined according to the formula set forth in the RBC instructions. The formula shall take into account and may adjust for the covariance between the following risks that are determined in each case by applying the factors in the manner set forth in the RBC instructions:

1. Asset risk.

2. Credit risk.

3. Underwriting risk.

4. All other business risks and any other relevant risks that are set forth in the RBC instructions.

E. If the director determines that an RBC report filed by a domestic insurer is inaccurate, the director shall adjust the RBC report to correct the inaccuracy and shall notify the insurer of the adjustment. The notice shall state the reason for the adjustment. An RBC report that has been adjusted shall be referred to as an adjusted RBC report.

F. Insurers shall maintain capital above the RBC levels required by this article.