Missouri Laws 375.1252 – RBC report, filed when — contents — formula, how determined — adjusted RBC ..
1. Every domestic insurer and every health organization shall, on or prior to each March first, prepare and submit to the director a report of its RBC level as of the end of the calendar year just ended, in a form and containing such information as is required by the RBC instructions. In addition, every domestic insurer and every domestic health organization shall file its RBC report:
(1) With the NAIC in accordance with the RBC instructions; and
Terms Used In Missouri Laws 375.1252
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Director: the director of the department of commerce and insurance. See Missouri Laws 375.001
- Insurer: all insurance companies, reciprocals, or interinsurance exchanges transacting the business of insurance in this state. See Missouri Laws 375.001
- 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.
- Property: includes real and personal property. See Missouri Laws 1.020
- State: when applied to any of the United States, includes the District of Columbia and the territories, and the words "United States" includes such district and territories. See Missouri Laws 1.020
(2) With the chief insurance regulatory official in any state in which the insurer or health organization is authorized to do business, if such official has notified the insurer or health organization of its request in writing, in which case the insurer or health organization shall file its RBC report not later than the later of:
(a) Fifteen days from the receipt of notice to file its RBC report with that state; or
(b) The filing date.
2. A life and health insurer’s RBC shall be determined in accordance with the formula set forth in the RBC instructions. The formula shall take into account and may adjust for the covariance between:
(1) The risk with respect to the insurer’s assets;
(2) The risk of adverse insurance experience with respect to the insurer’s insurance liabilities and obligations;
(3) The interest rate risk with respect to the insurer’s business; and
(4) All other business risks and such other relevant risks as are set forth in the RBC instructions.
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Such risks shall be determined in each case by applying the factors in the manner set forth in the RBC instructions.
3. A property and casualty insurer’s RBC shall be determined in accordance with the formula set forth in the RBC instructions. The formula shall take into account and may adjust for the covariance between:
(1) Asset risk;
(2) Credit risk;
(3) Underwriting risk; and
(4) All other business risks and such other relevant risks as are set forth in the RBC instructions.
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Such risks shall be determined in each case by applying the factors in the manner set forth in the RBC instructions.
4. A health organization’s RBC shall be determined in accordance with the formula set forth in the RBC instructions. The formula shall take into account and may adjust for the covariance between:
(1) Asset risk;
(2) Credit risk;
(3) Underwriting risk; and
(4) All other business risks and such other relevant risks as are set forth in the RBC instructions.
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Such risks shall be determined in each case by applying the factors in the manner set forth in the RBC instructions.
5. Insurers and health organizations should seek to maintain capital above the RBC levels required by sections 375.1250 to 375.1275, as such additional capital helps to secure an insurer against various risks inherent in, or affecting, the business of insurance and not accounted for or partially measured by the risk-based capital requirements contained in sections 375.1250 to 375.1275.
6. If a domestic insurer or domestic health organization files an RBC report which in the judgment of the director is inaccurate, then the director shall adjust the RBC report to correct the inaccuracy and shall notify the insurer or health organization of the adjustment. The notice shall contain a statement of the reason for the adjustment. An RBC report as so adjusted is referred to as an “adjusted RBC report”.