Maryland Code, INSURANCE 4-304
Terms Used In Maryland Code, INSURANCE 4-304
- 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.
(2) By applying the factors in the manner set forth in the RBC instructions, the formula shall take into account and may adjust for the covariance between:
(i) the risk with respect to the life insurer’s or fraternal benefit society’s assets;
(ii) the risk of adverse insurance experience with respect to the life insurer’s or fraternal benefit society’s liabilities and obligations;
(iii) the interest rate risk with respect to the life insurer’s or fraternal benefit society’s business; and
(iv) all other business risks and other relevant risks as set forth in the RBC instructions.
(b) (1) Except as provided in subsection (a) of this section, an insurer’s risk based capital shall be determined in accordance with the formula set forth in the RBC instructions.
(2) By applying the factors in the manner set forth in the RBC instructions, the formula shall take into account and may adjust for the covariance between:
(i) asset risk;
(ii) credit risk;
(iii) underwriting risk; and
(iv) all other business risks and other relevant risks as set forth in the RBC instructions.