Minnesota Statutes 64B.41 – Risk-Based Capital Reports
Subdivision 1.General requirements.
Every society shall, on or before each March 1, 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 the information required by the risk-based capital instructions. In addition, every society shall file its risk-based capital report with the NAIC according to the risk-based capital instructions.
Subd. 2.Specific requirements.
Terms Used In Minnesota Statutes 64B.41
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
Terms Used In Minnesota Statutes 64B.41
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
A society’s risk-based capital must be determined according to the formula set forth in the risk-based capital instructions. The formula must take into account, and may adjust for the covariance between:
(1) the risk with respect to the society’s assets;
(2) the risk of adverse insurance experience with respect to the society’s liabilities and obligations;
(3) the interest rate risk with respect to the society’s business; and
(4) all other business risks and other relevant risks set forth in the risk-based capital instructions;
determined in each case by applying the factors in the manner set forth in the risk-based capital instructions.
Subd. 3.Adjusted risk-based capital report.
If a society 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 society 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.”