Domestic insurers must file risk-based capital reports by the filing date, including extra filings to the insurance commissioner on written request; insurers should also keep capital above required risk-based levels.
1. A domestic insurer, on or prior to the filing date, shall prepare and submit to the commissioner a report of the insurer’s risk-based capital level as of the end of the calendar year immediately preceding the filing date, in a form and containing the information required by the risk-based capital instructions. A domestic insurer shall also file its risk-based capital report with both of the following: a. The national association of insurance commissioners. b. The insurance commissioner in each state in which the insurer is authorized to do business, if such insurance commissioner has notified the insurer of its request in writing. Upon receipt of the written request, the insurer shall file its risk-based capital report with the requesting commissioner by no later than the later of the following: (1) Fifteen days from the receipt of the written request. (2) The filing date. 2. A life and health insurer’s risk-based capital shall be determined pursuant to the formula set forth in the risk-based capital instructions. The formula shall take into account all of the following, and may be adjusted, as deemed appropriate by the commissioner, for the covariance between the following: 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. d. All other business risks and other relevant risks as identified in the risk-based capital instructions, determined in each case by applying the factors in the manner provided for in the risk-based capital instructions. 3. A property and casualty insurer’s risk-based capital shall be determined pursuant to the formula set forth in the risk-based capital instructions. The formula shall take into account all of the following, and may be adjusted, as deemed appropriate by the commissioner, for the covariance between the following: a. Asset risk. b. Credit risk. c. Underwriting risk. d. All other business risks and other relevant risks as identified in the risk-based capital instructions, determined in each case by applying the factors in the manner provided for in the risk-based capital instructions. 4. An insurer shall seek to maintain capital above the risk-based capital levels required by this chapter. 5. A risk-based capital report filed by a domestic insurer which in the judgment of the commissioner is inaccurate, shall be adjusted by the commissioner to correct the inaccuracy. The commissioner shall notify the insurer of the adjustment. The notice shall contain a statement of the reason for the adjustment. 96 Acts, ch 1046, §10 Referred to in §521E.1, 521E.10