Maine Revised Statutes Title 24-A Sec. 6452 – Risk-based capital reports
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1. Duty to file. A domestic insurer shall, on or before March 1st, submit to the superintendent a report of its risk-based capital levels as of the end of the previous calendar year, in a form and containing such information as is required by the risk-based capital instructions. In addition, a domestic insurer shall file its risk-based capital report:
A. With the NAIC in accordance with the risk-based capital instructions; and [PL 1993, c. 634, Pt. A, §1 (NEW).]
B. With the insurance regulator in any state in which the insurer is authorized to do business, if that regulator has notified the insurer of its request for the filing in writing, in which case the insurer shall file its risk-based capital report not later than the later of:
(1) Fifteen days after the receipt of notice to file its risk-based capital report with that state; or
(2) The filing date. [PL 1999, c. 113, §25 (AMD).]
[PL 1999, c. 113, §25 (AMD).]
Terms Used In Maine Revised Statutes Title 24-A Sec. 6452
- Adjusted risk-based capital report: means a risk-based capital report that has been adjusted by the superintendent in accordance with section 6452, subsection 3. See Maine Revised Statutes Title 24-A Sec. 6451
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Domestic insurer: means any insurance company domiciled in this State. See Maine Revised Statutes Title 24-A Sec. 6451
- in writing: include printing and other modes of making legible words. See Maine Revised Statutes Title 1 Sec. 72
- 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.
- Life or health insurer: means any insurance company described in section 409, subsection 3 and authorized to do business in this State under section 410, or a licensed property and casualty insurer writing only accident and health insurance. See Maine Revised Statutes Title 24-A Sec. 6451
- Property and casualty insurer: means any insurance company authorized to do business in this State under section 410 except a life or health insurer or single line mortgage guaranty insurer, financial guaranty insurer or title insurer. See Maine Revised Statutes Title 24-A Sec. 6451
- Risk-based capital instructions: means the risk-based capital instructions adopted by the NAIC, as such risk-based capital instructions may be amended by the NAIC from time to time in accordance with the procedures adopted by the NAIC. See Maine Revised Statutes Title 24-A Sec. 6451
- Risk-based capital report: means the report required in section 6452. See Maine Revised Statutes Title 24-A Sec. 6451
- Year: means a calendar year, unless otherwise expressed. See Maine Revised Statutes Title 1 Sec. 72
2. Determination of a life or health insurer‘s risk-based capital. A life or health insurer’s risk-based capital must be determined in accordance with the formula set forth in the risk-based capital instructions. The formula must take into account, and may adjust for the covariance between, the following:
A. The risk with respect to the insurer’s assets; [PL 1993, c. 634, Pt. A, §1 (NEW).]
B. The risk of adverse insurance experience with respect to the insurer’s liabilities and obligations; [PL 1993, c. 634, Pt. A, §1 (NEW).]
C. The interest rate risk with respect to the insurer’s business; and [PL 1993, c. 634, Pt. A, §1 (NEW).]
D. All other business risks and such other relevant risks as are 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. [PL 1993, c. 634, Pt. A, §1 (NEW).]
[PL 1997, c. 81, §5 (AMD).]
3. Filing of inaccurate report. If a domestic insurer files a risk-based capital report that in the judgment of the superintendent is inaccurate, then the superintendent shall adjust the risk-based capital report to correct the inaccuracy and notify the insurer of the adjustment. The notice must contain a statement of the reason for the adjustment. A risk-based capital report so adjusted is referred to as an adjusted risk-based capital report.
[PL 1993, c. 634, Pt. A, §1 (NEW).]
4. Determination of a property and casualty insurer‘s risk-based capital. A property and casualty insurer’s risk-based capital is determined in accordance with the formula set forth in the risk-based capital instructions. The formula must take into account and may adjust for the covariance between the following:
A. Asset risk; [PL 1997, c. 81, §6 (NEW).]
B. Credit risk; [PL 1997, c. 81, §6 (NEW).]
C. Underwriting risk; and [PL 1997, c. 81, §6 (NEW).]
D. All other business risks and such other relevant risks as are set forth in the risk-based capital instructions, determined in each case by applying the factors set forth in the risk-based capital instructions. [PL 1997, c. 81, §6 (NEW).]
[PL 1997, c. 81, §6 (NEW).]
SECTION HISTORY
PL 1993, c. 634, §A1 (NEW). PL 1997, c. 81, §§5,6 (AMD). PL 1999, c. 113, §25 (AMD).