§ 26.1-03.2-02 — Risk-based capital reports

North Dakota § 26.1-03.2-02

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-03.2: Risk-Based Capital for Health Organizations

Text

1. On or before each March first, a domestic health organization shall prepare and submit
to the commissioner a report of its risk-based capital levels as of the end of the
calendar year just ended, in a form and containing such information as is required by
the risk-based capital instructions. In addition, a domestic health organization shall file
its risk-based capital report:
a. With the national association of insurance commissioners in accordance with the
risk-based capital instructions; and

b. 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 risk-based capital report not later than the later of:
(1) Fifteen days from the receipt of notice to file its risk-based capital report with
that state; or
(2) The filing date.
2. A health organization's risk-based capital must be determined in accordance with the
formula set forth in the risk-based capital instructions. The formula must take the
following into account, and may adjust for the covariance between, as determined in
each case by applying the factors in the manner set forth in the risk-based capital
instructions:
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
risk-based capital instructions.
3. 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. Accordingly, health organizations
should seek to maintain capital above the risk-based capital 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.
4. If a domestic health organization files a risk-based capital report that in the judgment
of the commissioner is inaccurate, then the commissioner shall adjust the risk-based
capital report to correct the inaccuracy and shall notify the health organization of the
adjustment. The notice must contain a statement of the reason for the adjustment. A
risk-based capital report as so adjusted is referred to as an "adjusted risk-based
capital report".