Vermont Statutes Title 8 Sec. 8302
Terms Used In Vermont Statutes Title 8 Sec. 8302
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Commissioner: means the Commissioner of Financial Regulation. See
- Domestic: when applied to a corporation, company, association, or copartnership shall mean organized under the laws of this State; "foreign" when so applied, shall mean organized under the laws of another state, government, or country. See
- Domestic insurer: means any insurance company organized in this State under chapter 101, subchapter 1 of this title, any fraternal benefit society organized in this State under chapter 121 of this title, any health maintenance organization organized in this State under chapter 139 of this title, and any entity organized in this State under chapter 123 or 125 of this title. See
- following: when used by way of reference to a section of the law shall mean the next preceding or following section. See
- Fraternal benefit society: means any insurance company licensed under chapter 121 of this title. See
- Health maintenance organization: means any entity organized in the State under chapter 139 of this title. See
- 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 an insurance company that insures lives or health as defined in subdivisions 3301(a)(1) and (2) of this title, an entity organized in this State under chapter 123 or 125 of this title, or a licensed property and casualty insurer writing only accident and health insurance. See
- NAIC: means the National Association of Insurance Commissioners. See
- Property and casualty insurer: means any insurance company that insures property or casualty as defined in subdivisions 3301(a)(3) and (7) of this title, but shall not include monoline mortgage guaranty insurers, financial guaranty insurers, or title insurers. See
- Risk-based capital instructions: means the risk-based capital report form and the related instructions adopted by the NAIC and approved by the Commissioner. See
- Risk-based capital level: means one of the following four levels: company action level risk-based capital, regulatory action level risk-based capital, authorized control level risk-based capital, or mandatory control level risk-based capital. See
- Risk-based capital report: means the report required in section 8302 of this title. See
- State: when applied to the different parts of the United States may apply to the District of Columbia and any territory and the Commonwealth of Puerto Rico. See
§ 8302. Risk-based capital report
(a) Each domestic insurer shall annually prepare and submit to the Commissioner a report of its risk-based capital level for the calendar year just ended. The report shall be filed prior to March 1 each year and shall be in the form and contain such information as is required by the risk-based capital instructions.
(b) Each domestic insurer shall file its risk-based capital report:
(1) with the NAIC in accordance with the risk-based capital instructions; and
(2) with the insurance commissioner of any state in which the insurer is authorized to do business, if the insurance commissioner of that state has notified the insurer of its request in writing. Any report required under this subdivision shall be filed not later than the later of 15 days from the receipt of notice to file the report with that state or the filing date provided in subsection (a) of this section.
(c) A life or health insurer‘s or fraternal benefit society‘s risk-based capital shall be determined in accordance with the formula set forth in the risk-based capital 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 risk-based capital instructions:
(1) the risk with respect to the insurer’s assets;
(2) the risk of adverse insurance experience with respect to the insurer’s 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 risk-based capital instructions.
(d) A property and casualty insurer‘s or health maintenance organization‘s risk-based capital shall be determined in accordance with the formula set forth in the risk-based capital 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 risk-based capital instructions:
(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 risk-based capital instructions.
(e) If a domestic insurer 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 insurer of the adjustment. The notice shall contain a statement of the reason for the adjustment. A risk-based capital report adjusted by the Commissioner under this subsection shall be referred to as an “adjusted risk-based capital report.” (Added 1993, No. 235 (Adj. Sess.), § 8, eff. June 21, 1994; amended 2013, No. 29, § 37, eff. May 13, 2013; 2021, No. 25, § 12, eff. May 12, 2021.)