§ 23-63-1502 — RBC reports

(a) (1) On or before each March 1, the "filing date", a domestic health organization shall prepare and submit to the Insurance Commissioner a report of its RBC levels as of the end of the calendar year just ended, in a form and containing the information required by the RBC instructions. (2) A domestic health organization shall file its RBC report: (A) With the NAIC according to the RBC instructions; and (B) With the insurance commissioner in a 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 by 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 is determined according to the formula stated 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 way stated in the RBC instructions: (1) Asset risk; (2) Credit risk; (3) Underwriting risk; and (4) Other business risks and other relevant risks as are stated in the RBC instructions. (c) An excess of capital, including net worth, over the amount produced by the risk-based capital requirements contained in this subchapter and the formulas, schedules, and instructions referenced in this subchapter is desirable in the business of health insurance. Accordingly, health organizations should seek to maintain capital above the RBC levels required by this subchapter. Additional capital is 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 subchapter. (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 as adjusted is referred to as an "adjusted RBC report".

Legislative History

Acts 1999, No. 580, § 2; 2011, No. 760, § 5.