TITLE 27
Insurance
CHAPTER 27-4.7
Risk-Based Capital (RBC) For Health Organizations Act
SECTION 27-4.7-3
§ 27-4.7-3 RBC reports.
(a) A domestic health organization shall, on or prior to each March 1 (the
"filing date"), prepare and submit to the commissioner a report of its RBC
levels as of the end of the calendar year just ended, in a form and containing
any information that is required by the RBC instructions. In addition, a
domestic health organization shall file its RBC report:
(1) With the NAIC in accordance with the RBC instructions; and
(2) With the insurance commissioner in any state in which the
health organization is authorized to do business, if the insurance commissioner
has notified the health organization of its request in writing, in which case
the health organization shall file its RBC report not later than the later of:
(i) Fifteen (15) days from the receipt of notice to file its
RBC report with that state; or
(ii) The filing date.
(b) A health organization's RBC shall be determined in
accordance with the formula set forth in the RBC instructions. The formula
shall take the following into account (and may adjust for the covariance
between) 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; and
(4) All other business risks and any other relevant risks
that are set forth in the RBC instructions.
(c) An excess of capital (i.e., net worth) over the amount
produced by the risk-based capital requirements contained in this chapter and
the formulas, schedules, and instructions referenced in this chapter is
desirable in the business of health insurance. Health organizations should seek
to maintain capital above the RBC levels required by this chapter. Additional
capital is used and useful in the insurance business and helps to secure a
health organization against various risks inherent in, or affecting, the
business of insurance and not accounted for, or only partially measured by, the
risk-based capital requirements contained in this chapter.
(d) If a domestic health organization files an RBC report
that in the judgment of the commissioner is inaccurate, then the commissioner
shall adjust the RBC report to correct the inaccuracy and shall notify the
health organization of the adjustment. The notice shall contain a statement of
the reason for the adjustment. An RBC report adjusted in this manner is
referred to as an "adjusted RBC report."
History of Section.
(P.L. 2000, ch. 178, § 1; P.L. 2000, ch. 200, § 11; P.L. 2000, ch.
229, § 11.)