31A-17-602 - RBC reports -- RBC of life and accident and health insurers -- RBC of property and casualty insurers. - Utah Statutes

31A-17-602. RBC reports -- RBC of life and accident and health insurers -- RBCof property and casualty insurers.
(1) Every domestic life or accident and health insurer, every domestic property andcasualty insurer, and every domestic health organization shall:
(a) on or before March 1, prepare and submit to the commissioner a report of its RBClevels as of the end of the calendar year just ended, in a form and containing the information as isrequired by the RBC instructions;
(b) file its RBC report with the insurance commissioner in any state in which the insureror health organization is authorized to do business, if the insurance commissioner of that statenotifies the insurer or health organization of its request in writing, in which case the insurer orhealth organization may file its RBC report not later than the later of:
(i) 15 days from the receipt of notice to file its RBC report with that state; or
(ii) March 1; and
(c) file the documents described in Subsections (1)(a) and (b) with the NationalAssociation of Insurance Commissioners in accordance with RBC instructions.
(2) A life and accident and health insurer's RBC shall be determined in accordance withthe formula set forth in the RBC instructions. The formula shall take into account and may adjustfor the covariance between:
(a) the risk with respect to the insurer's assets;
(b) the risk of adverse insurance experience with respect to the insurer's liabilities andobligations;
(c) the interest rate risk with respect to the insurer's business; and
(d) all other business risks and other relevant risks as set forth in the RBC instructions.
(3) A property and casualty insurer's RBC shall be determined in accordance with theformula set forth in the RBC instructions. The formula shall take the following into account andmay adjust for the covariance between:
(a) asset risk;
(b) credit risk;
(c) underwriting risk; and
(d) all other business risks and the other relevant risks as set forth in the RBC instructions.
(4) A health organization's RBC shall be determined in accordance with the formula setforth in the RBC instructions. The formula shall take the following into account and may adjustfor the covariance between:
(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 RBCinstructions.
(5) (a) If a domestic insurer files an RBC report that the commissioner determines isinaccurate, the commissioner shall adjust the RBC report to correct the inaccuracy and shallnotify the insurer of the adjustment.
(b) The notice under Subsection (5)(a) shall contain a statement of the reason for theadjustment.
(6) The commissioner may make rules to assist in applying the provisions of this part tohealth organizations.

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Amended by Chapter 116, 2001 General Session