Skip to navigation Skip to content Skip to subnav
Searching 2021-2022 Session

The Vermont Statutes Online

 

Title 8 : Banking and Insurance

Chapter 159 : RISK BASED CAPITAL FOR INSURERS

(Cite as: 8 V.S.A. § 8302)
  • § 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 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 which 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.)