§ 58-12-6. Risk-based capital reports.
§ 58‑12‑6. Risk‑basedcapital reports.
(a) Every domesticinsurer shall, on or before each March 1 (the "filing date"), prepareand submit to the Commissioner a report of its risk‑based capital levelsas of the end of the calendar year just ended, in a form and containing suchinformation as is required by the risk‑based capital instructions. Inaddition, every domestic insurer shall file its risk‑based capitalreport:
(1) With the NAIC inaccordance with the risk‑based capital instructions; and
(2) With the insuranceregulator in any state in which the insurer is authorized to do business, ifthe Commissioner has notified the insurer of its request in writing, in whichcase the insurer shall file its risk‑based capital report not later thanthe later of:
a. Fifteen days afterthe receipt of notice to file its risk‑based capital report with thatstate; or
b. The filing date.
(b) A life or healthinsurer's risk‑based capital shall be determined in accordance with theformula set forth in the risk‑based capital instructions. The formulashall take into account (and may adjust for the covariance between):
(1) The risk withrespect to the insurer's assets;
(2) The risk of adverseinsurance experience with respect to the insurer's liabilities and obligations;
(3) The interest raterisk with respect to the insurer's business; and
(4) All other businessrisks and such other relevant risks as are set forth in the risk‑basedcapital instructions.
These risks shall be determinedin each case by applying the factors in the manner set forth in the risk‑basedcapital instructions.
(c) If a domesticinsurer files a risk‑based capital report that in the judgment of theCommissioner is inaccurate, the Commissioner shall adjust the risk‑basedcapital report to correct the inaccuracy and shall notify the insurer of theadjustment. The notice shall contain a statement of the reason for theadjustment. A risk‑based capital report as adjusted is referred to as an"adjusted risk‑based capital report".
(d) A property orcasualty insurer's risk‑based capital and a health organization's risk‑basedcapital shall be determined in accordance with the formula set forth in therisk‑based capital instructions. The formula shall take into account (andmay adjust for the covariance between):
(1) Asset risk;
(2) Credit risk;
(3) Underwriting risk;and
(4) All business andother relevant risks set forth in the risk‑based capital instructions,determined in each case by applying the factors in the manner set forth in therisk‑based capital instructions. (1993 (Reg. Sess., 1994), c. 678, s. 1; 1995, c. 318,s. 4; 2001‑223, s. 12.4.)