Or. Admin. R. 410-141-5200
Current through Register Vol. 63, No. 6, June 1, 2024
Section 410-141-5200 - CAPITALIZATION: RBC Reports(1) On or before April 30 of each year, a CCO shall prepare and submit to the Authority a report of its Total Adjusted Capital and its RBC Levels as of the end of the calendar year just ended, in a form and containing such information as are required by the RBC instructions. In addition, a CCO shall file its RBC Report with the NAIC in accordance with the RBC instructions. The CCO shall report in its annual financial statement its Total Adjusted Capital and its Authorized Control Level RBC as calculated in its RBC Report. A CCO's RBC Report will be considered confidential and shall not be made available to the public.(2) A CCO's Total Adjusted Capital shall be determined in accordance with the formula set forth in the RBC instructions. The formula shall take the following factors into account (and may adjust for the covariance between such factors) determined in each case by applying the factors in the manner set forth in the RBC instructions: (c) Underwriting risk; and(d) All other business risks and such other relevant risks as are set forth in the RBC instructions.(3) A substantial excess of Total Adjusted Capital over Company Action Level RBC is desirable. Accordingly, a CCO should seek to maintain Total Adjusted Capital that exceeds the CCO's Company Action Level RBC. Additional capital is used and useful in the business of a risk-bearing entity and helps to secure a CCO against various risks inherent in, or affecting, the business of a CCO and not accounted for or only partially measured by the risk-based capital requirements contained in OAR 410-141-5195 to 410-141-5220. The Authority recommends that a CCO endeavor to maintain its Total Adjusted Capital at no less than 300% of its Authorized Control Level RBC.(4) If a CCO files an RBC Report that in the judgment of the Authority is inaccurate, then the Authority shall adjust the RBC Report to correct the inaccuracy and shall notify the CCO of the adjustment. The notice shall contain a statement of the reason for the adjustment. An RBC Report as so adjusted is referred to as an "adjusted RBC Report."Or. Admin. R. 410-141-5200
DMAP 59-2019, adopt filed 12/18/2019, effective 1/1/2020Statutory/Other Authority: ORS 413.042, 414.615, 414.625, 414.635 & 414.651
Statutes/Other Implemented: ORS 414.610 - 414.685