Nebraska Statutes 44-6015. Risk-based capital reports
(1) Every domestic insurer or domestic health organization shall annually, on or prior to March 1, referred to in this section as the filing date, prepare and submit to the director a risk-based capital report of its risk-based capital levels as of the end of the calendar year just ended, in a form and containing such information as is required by the risk-based capital instructions. In addition, every domestic insurer or domestic health organization shall file its risk-based capital report:
Terms Used In Nebraska Statutes 44-6015
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Director: means the Director of Insurance. See Nebraska Statutes 44-6005
- Domestic: when applied to corporations shall mean all those created by authority of this state. See Nebraska Statutes 49-801
- Domestic health organization: means a health organization domiciled in this state. See Nebraska Statutes 44-6006.01
- Health organization: means a health maintenance organization, prepaid limited health service organization, prepaid dental service corporation, or other managed care organization. See Nebraska Statutes 44-6007.02
- Insurer: means an insurer as defined in section 44-103 authorized to transact the business of insurance, except that insurer does not include health organizations, unincorporated mutual associations, assessment associations, health maintenance organizations, prepaid dental service corporations, prepaid limited health service organizations, monoline mortgage guaranty insurers, monoline financial guaranty insurers, title insurers, prepaid legal corporations, intergovernmental risk management pools, and any other kind of insurer to which the application of the Insurers and Health Organizations Risk-Based Capital Act, in the determination of the director, would be clearly inappropriate. See Nebraska Statutes 44-6008
- 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.
- Risk-based capital instructions: means the risk-based capital report, including risk-based capital instructions adopted by the National Association of Insurance Commissioners, as such instructions may be amended by the association from time to time in accordance with the procedures adopted by the association. See Nebraska Statutes 44-6010
- Risk-based capital report: means the report required in section 44-6015. See Nebraska Statutes 44-6013
- State: when applied to different states of the United States shall be construed to extend to and include the District of Columbia and the several territories organized by Congress. See Nebraska Statutes 49-801
- Year: shall mean calendar year. See Nebraska Statutes 49-801
(a) With the National Association of Insurance Commissioners in accordance with the risk-based capital instructions; and
(b) With the insurance commissioner in any state in which the insurer or health organization is authorized to do business if such insurance commissioner has notified the insurer or health organization of its request in writing, in which case the insurer or health organization shall file its risk-based capital report not later than the later of:
(i) Fifteen days after the receipt of notice to file its risk-based capital report with such state; or
(ii) The filing date.
(2) A life and health insurer’s or a 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:
(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; and
(d) All other business risks and such other relevant risks as are set forth in the risk-based capital instructions.
Such risks shall be determined in each case by applying the factors in the manner set forth in the risk-based capital instructions.
(3) A property and casualty insurer’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:
(a) Asset risk;
(b) Credit risk;
(c) Underwriting risk; and
(d) All other business risks and such other relevant risks as are set forth in the risk-based capital instructions.
Such risks shall be determined in each case by applying the factors in the manner set forth in the risk-based capital instructions.
(4) A health 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:
(a) Asset risk;
(b) Credit risk;
(c) Underwriting risk; and
(d) All other business risks and such other relevant risks as are set forth in the risk-based capital instructions.
Such risks shall be determined in each case by applying the factors in the manner set forth in the risk-based capital instructions.
(5) An excess of capital over the amount produced by the risk-based capital requirements contained in the Insurers and Health Organizations Risk-Based Capital Act and the formulas, schedules, and instructions referenced in the act is desirable in the business of insurance. Accordingly, insurers and health organizations should seek to maintain capital above the risk-based capital levels required by the act. Additional capital is used and useful in the insurance business and helps to secure an insurer or a health organization against various risks inherent in, or affecting, the business of insurance and not accounted for or only partially measured by the risk-based capital requirements contained in the act.
(6) If a domestic insurer or a domestic health organization files a risk-based capital report which in the judgment of the director is inaccurate, the director shall adjust the risk-based capital report to correct the inaccuracy and shall notify the insurer or health organization of the adjustment. The notice shall contain a statement of the reason for the adjustment.