a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind;
(ii)
a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and
(iii)
a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301
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.
Life or accident and health insurer: means :
(a)
an insurance company licensed to write life insurance, accident and health insurance, or both; or
(b)
a licensed property casualty insurer writing only disability insurance. See Utah Code 31A-17-601
Property and casualty insurer: means any insurance company licensed to write lines of insurance other than life but does not include a monoline mortgage guaranty insurer, financial guaranty insurer, or title insurer. See Utah Code 31A-17-601
RBC instructions: means the RBC report including the National Association of Insurance Commissioner's risk-based capital instructions that govern the year for which an RBC report is prepared. See Utah Code 31A-17-601
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
on or before March 1, prepare and submit to the commissioner a report of its RBC levels as of the end of the calendar year just ended, in a form and containing the information as is required by the RBC instructions;
(b)
file its RBC report with the insurance commissioner in any state in which the insurer or health organization is authorized to do business, if the insurance commissioner of that state notifies the insurer or health organization of its request in writing, in which case the insurer or health organization may file its RBC report not later than the later of:
(i)
15 days from the receipt of notice to file its RBC report with that state; or
(ii)
March 1; and
(c)
file the documents described in Subsections (1)(a) and (b) with the National Association of Insurance Commissioners in accordance with RBC instructions.
(2)
A life and accident and health insurer’s RBC shall be determined in accordance with the formula set forth in the RBC 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 other relevant risks as set forth in the RBC instructions.
(3)
A property and casualty insurer’s RBC shall be determined in accordance with the formula set forth in the RBC instructions. The formula shall take the following 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 the other relevant risks as set forth in the RBC instructions.
(4)
A health organization’s RBC shall be determined in accordance with the formula set forth in the RBC instructions. The formula shall take the following 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 RBC instructions.
(5)
(a)
If a domestic insurer files an RBC report that the commissioner determines is inaccurate, the commissioner shall adjust the RBC report to correct the inaccuracy and shall notify the insurer of the adjustment.
(b)
The notice under Subsection (5)(a) shall contain a statement of the reason for the adjustment.
(6)
The commissioner may make rules to assist in applying the provisions of this part to health organizations.
