(215 ILCS 5/35A-10)
Sec. 35A-10. RBC Reports.
(a) On or before each March 1 (the "filing date"), every domestic
insurer
shall prepare and submit to the Director a report of its RBC levels as of the
end of the previous calendar year in the form and containing the information
required by the RBC Instructions. Every domestic insurer shall also file its
RBC Report with the NAIC in accordance with the RBC Instructions. In addition,
if requested in writing by the chief insurance regulatory official of any state
in which it
is authorized to do business, every domestic insurer shall file its RBC Report
with that official no later than the later of 15 days after the insurer
receives the written request
or the filing date.
(b) A life, health, or life and health insurer's or fraternal benefit society's RBC shall be
determined under the formula set
forth in the RBC Instructions. The formula shall take into account (and may
adjust for the covariance between):
(1) the risk with respect to the insurer's assets;
(2) the risk of adverse insurance experience with respect to the insurer's liabilities |
(3) the interest rate risk with respect to the insurer's business; and
(4) all other business risks and other relevant risks set forth in the RBC
Instructions.
These risks shall be determined in each case by applying
the factors in the
manner set forth in the RBC Instructions. Notwithstanding the foregoing, and notwithstanding the RBC Instructions, health maintenance organizations operating as Medicaid managed care plans under contract with the Department of Healthcare and Family Services shall not be required to include in its RBC calculations any capitation revenue identified by Medicaid managed care plans as authorized under Section 5A-12.6(r) of the Illinois Public Aid Code.
(c) 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
into account (and may adjust for the covariance between):
(1) asset risk;
(2) credit risk;
(3) underwriting risk; and
(4) all other business risks and other relevant risks set
forth in the RBC Instructions.
These risks shall be determined in each case by applying the factors in the
manner
set forth in the RBC Instructions.
(d) 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):
(1) asset risk;
(2) credit risk;
(3) underwriting risk; and
(4) all other business risks and other relevant risks set forth in the RBC
Instructions.
These risks shall be determined in each case by applying the factors in the
manner set forth in the RBC Instructions.
(e) An excess of capital over the amount produced by the
risk-based
capital requirements contained in this Code and the formulas, schedules, and
instructions referenced in this Code is desirable in the business of insurance.
Accordingly, insurers should seek to maintain capital above the RBC levels
required by this Code. Additional capital is used and useful in the insurance
business and helps to secure an insurer 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 this Code.
(f) If a domestic insurer files an RBC Report that, in the
judgment of the
Director, is inaccurate, the Director shall adjust the RBC 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.
(Source: P.A. 100-580, eff. 3-12-18.)
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