Vermont § 8302 - Risk-based capital report

§ 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.)