§ 27-4.6-2 - RBC reports. - Rhode Island Statutes

SECTION 27-4.6-2

   § 27-4.6-2  RBC reports. – (a) Every domestic insurer shall, on or prior to each March 1 (the "filingdate"), prepare and submit to the commissioner a report of its RBC levels as ofthe end of the calendar year just ended, in a form and containing anyinformation required by the RBC instructions. In addition, every domesticinsurer 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 theinsurer is authorized to do business, if the insurance commissioner hasnotified the insurer of its request in writing, in which case the insurer shallfile its RBC report not later than the later of:

   (i) Fifteen (15) days from the receipt of notice to file itsRBC report with that state; or

   (ii) The filing date.

   (b) A life and health 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) therisk with respect to the insurer's assets; (2) the risk of adverse insuranceexperience with respect to the insurer's liabilities and obligations; (3) theinterest rate risk with respect to the insurer's business; and (4) all otherbusiness risks and any other relevant risks set forth in the RBC instructions;determined in each case by applying the factors in the manner set forth in theRBC instructions.

   (c) A property and casualty insurer's RBC shall be determinedin accordance with the formula set forth in the RBC instructions. The formulashall take into account (and may adjust for the covariance between): (1) assetrisk; (2) credit risk; (3) underwriting risk; and (4) all other business risksand any other relevant risks set forth in the RBC Instructions; determined ineach case by applying the factors in the manner set forth in the RBCinstructions.

   (d) An excess of capital over the amount produced by therisk-based capital requirements contained in this chapter and the formulas,schedules and instructions referenced in this chapter is desirable in thebusiness of insurance. Insurers should seek to maintain capital above the RBClevels required by this chapter. Additional capital is used and useful in theinsurance business and helps to secure an insurer against various risksinherent in, or affecting, the business of insurance and not accounted for oronly partially measured by the risk-based capital requirements contained inthis chapter.

   (e) If a domestic insurer files an RBC report, which in thejudgment of the commissioner is inaccurate, then the commissioner shall adjustthe RBC report to correct the inaccuracy and shall notify the insurer of theadjustment. The notice shall contain a statement of the reason for theadjustment. An RBC report adjusted in this manner is referred to as an"adjusted RBC report."