(1) Every domestic insurer shall, on or prior to each March 1 (the "filing date"), prepare and submit to the director a report of its RBC levels 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 shall file its RBC report:
(a)  With the NAIC in accordance with the RBC instructions; and
(b)  With the insurance director in any state in which the insurer is authorized to do business, if the insurance director has notified the insurer of its request in writing, in which case the insurer shall file its RBC report not later than 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.
(2)  A life and health insurer’s or fraternal benefit society’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, the following factors determined in each case by applying the factors in the manner set forth in the RBC instructions:
(a)  The risk with respect to the insurer’s assets;
(b)  The risk of adverse insurance experience with respect to the insurer’s liabilities and obligations;
(c)  The interest rate risk with respect to the insurer’s business; and
(d)  All other business risks and such other relevant risks as are set forth in the RBC instructions.
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Terms Used In Idaho Code 41-5402

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Domestic insurer: means any insurer domiciled in this state. See Idaho Code 41-5401
  • Insurer: means any insurance company authorized to transact insurance business in this state and includes a fraternal benefit society and a health organization unless the context otherwise requires. See Idaho Code 41-5401
  • 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.
  • NAIC: means the national association of insurance commissioners. See Idaho Code 41-5401
  • Property: includes both real and personal property. See Idaho Code 73-114
  • RBC: means risk-based capital. See Idaho Code 41-5401
  • RBC instructions: means the RBC report, including risk-based capital instructions adopted by the NAIC, as such RBC instructions may be amended by the NAIC from time to time in accordance with the procedures adopted by the NAIC. See Idaho Code 41-5401
  • RBC report: means the report required in section 41-5402, Idaho Code. See Idaho Code 41-5401
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories; and the words "United States" may include the District of Columbia and territories. See Idaho Code 73-114
(3)  A property and casualty insurer’s or health organization’s RBC shall be determined in accordance with the formula set forth 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 manner set forth in the RBC 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 RBC instructions.
(4)  An excess of capital 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 insurance. Accordingly, insurers should seek to maintain capital above the RBC levels required by this chapter. Additional capital is used and useful in the insurance business and helps to secure an insurer 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.
(5)  If a domestic insurer 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 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."