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CAPITAL ADEQUACY (E) TASK FORCE - ADOPTED MODIFICATIONS TO RISK-BASED CAPITAL FORMULAS
CAPITAL ADEQUACY (E) TASK FORCE - ADOPTED MODIFICATIONS TO RISK-BASED CAPITAL FORMULAS

Capital Adequacy (E) Task Force

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

Last Updated December 1, 2020

This listing does not include adopted proposals for Risk-Based Capital for the years 2019 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
2020-07-H 2021 Year-End Split Bonds and Miscellaneous Assets into two separate pages (XR007 and XR008) with all subsequent pages renumbered. 11/19/2020 H
2020-04-H 2021 Year-End The MAX function was added to the formula included in Line 17 of page XR021 in the forecasting spreadsheet.  11/19/2020 H
2020-02-CA 2021 Year-End Deleted the ACA Fee Sensitivity Test from the Health, Life & Fraternal and Property & Casualty RBC formulas. 11/19/2020 CA
2020-12-CR 2020 Year-End 2020 Cat Event List.  11/19/2020 P
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