Capital Adequacy (E) Task Force

Adopted Modifications to Risk-Based Capital Formulas (Health, Life and Property/Casualty)

Last Updated August 12, 2020

This listing does not include adopted proposals for Risk-Based Capital for the years 2018 and prior.

Proposals are listed in "Effective Date" order followed by the "Date Adopted."

Statement Type:

CA = All Formulas; H = Health; L/F = Life/Fraternal; P/C = Property/Casualty

Proposal No. Effective Date Description Date Adopted Formula Affected
2020-03-L 2020 Year-End Modified the C-3 RBC instructions for 2020 and includes the deletion of instructions specific to 2019 which are not applicable to 2020 and beyond. 08/05/2020 L
2020-05-CA 2020 Year-End Inserted the word "Overview" on the page iv heading and modified the Table of Contents to include only the page heading and deleted references to the individual sections of the Overview. 06/30/2020 CA
2018-19-P 2020 Year-End Modified the instructions to reflect the factors for all uncollateralized reinsurance recoverable from unrated reinsurers to be the same for authorized, unauthorized, certified and reciprocal reinsurance.  06/30/2020 P
2020-01-P 2020 Year-End Annual update of the Line 1 factors for pages PR017 and PR018. 06/30/2020 P
2020-06-L 2020 Year-End Additional instructions for the completion of the longevity risk schedule in the Life and Fraternal RBC formula. 06/30/2020 L
2019-16-CA 2020 Year-End

Increase the number of NAIC Designations for Bonds from the current 6 to 20 in all RBC formulas.

04/30/2020 CA
2019-13-L 2020 Year-End A new schedule and instructions were added to the Life and Fraternal RBC formula for longevity risk.  04/30/2020 L
2019-07-CA 2020 Year-End The RBC Preamble provides a summary of the purpose of RBC including the history, objectives and critical concepts of RBC. 12/08/2019 CA
2019-11-P 2020 Year-End The changes clarified the reinsurance recoverable from individual syndicates of Lloyd's of London that are covered under the Lloyd's Central Fund may utilize the lowest financial strength group rating recieved from an approved rating agency. 12/08/2019 P
2019-12-P 2020 Year-End Eliminated the adjustment for reinsurance penalty for affiliates applicable to Schedule F on page PR038. 12/08/2019 P
2018-17-CA 2020 Year-End The capitation tables included in the forecasting file will be captured electronically. 06/28/2019 CA
2018-18-L 2019 Year-End The life and fraternal formulas were combined into one formula based on the elimination of the fraternal annual statement blank by the Blanks (E) Working Group for year-end 2019 reporting.  06/28/2019 L
2019-10-L 2019 Year-End Modified the instructions for page LR027, Interest Rate Risk and Market Risk and appendices, to incorporate changes needed to implement the the Variable Annuities Framework.   06/28/2019 L
2019-08-P 2019 Year-End The affiliated investment instructions were modified to match the blanks by removing "Bonds" from the instructions as affiliated bonds are no longer include in the affiliated investment calculation and changed the "F" to "E" and "A" for indirectly owned U.S. P&C Insurance affiliates. 06/28/2019 P
2019-05-P 2019 Year-End Annual update of the Line 1 factors for pages PR017 and PR018. 06/28/2019 P
2019-06-CA 2019 Year-End Added clarifying language to the RBC Procedures that the Capital Adequacy (E) Task Force will prioritize referrals received and may request and impact analysis before structural changes are considered.  04/07/2019 CA
2018-14-CA 2019 Year-End Revised Table 2 of the electronic only stop loss tables to be split out between specific stop loss and aggregate stop loss. 04/07/2019 CA
2018-12-H 2019 Year-End Bond and preferred stock descriptions were corrected on page XR011. 04/07/2019 H
2018-16-P 2019 Year-End Updated the Line 4 factors for page PR017 and PR018 based on American Academy of Actuaries (Academy) Report for 2017 Property and Casualty Risk-Based Capital Underwriting Line 4 Factors. 04/07/2019 P
2018-20-P 2019 Year-End Updated the lines descriptions on Preferred Stock and Hybrid Securities to Unaffiliated Preferred Stock and Hybrid Securities on the page PR011 blanks and instructions. 04/07/2019 P
2019-02-P 2019 Year-End Modified the instructions for page PR016 based on observed inconsistencies between the instructions and the formula. 04/07/2019 P
2018-05-CA 2019 Year-End The label for the R0, C0 and H0 components was changed to more accurately reflect the risks included in these components. The component was re-labeled to "Subsidiary Insurance Companies and Misc. Off-Balance Sheet." 06/28/2018 CA