375.1252. RBC report, filed when--contents--formula, how determined--adjusted RBC report required, when. - Missouri Statutes

RBC report, filed when--contents--formula, how determined--adjustedRBC report required, when.

375.1252. 1. Every domestic insurer shall, on or prior to each Marchfirst, prepare and submit to the director a report of its RBC level as ofthe end of the calendar year just ended, in a form and containing suchinformation as is required by the RBC instructions. In addition, everydomestic insurer 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 inwhich the insurer is authorized to do business, if such official hasnotified the insurer of its request in writing, in which case the insurershall file its RBC report not later than the later of:

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

(b) The filing date.

2. A life and health insurer's RBC shall be determined in accordancewith the formula set forth in the RBC instructions. The formula shall takeinto 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 theinsurer'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 setforth in the RBC instructions. Such risks shall be determined in each caseby applying the factors in the manner set forth in the RBC instructions.

3. A property and casualty insurer's RBC shall be determined inaccordance with the formula set forth in the RBC instructions. The formulashall 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 setforth in the RBC instructions.

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

4. Insurers should seek to maintain capital above the RBC levelsrequired by sections 375.1250 to 375.1275, as such additional capital helpsto secure an insurer against various risks inherent in, or affecting, thebusiness of insurance and not accounted for or partially measured by therisk-based capital requirements contained in sections 375.1250 to 375.1275.

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

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