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 August 5, 2024
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." Proposals adopted with modifications will be listed with the original proposal starting with year-end 2023.
Statement Type:
CA = All Formulas; H = Health; L/F = Life/Fraternal; P/C = Property/Casualty
| Proposal No. | Effective Date | Description | Date Adopted | Formula Affected |
|---|---|---|---|---|
| 2024-23-CR | 2024 Year End | 2024 U.S. and non-U.S. Catastrophe Event Lists | 11/18/24 | P/C |
| 2024-22-CR | 2024 Year End | 2015-2023 U.S. and non-U.S. Convective Storm Event Lists | 11/18/24 | P/C |
| 2024-20-CR | 2024 Year End | Industry modification to pages to gather wildfire and hurricane data | 8/2/24 | P/C |
| 2024-09-CA | 2024 Year End | Annual update of the underwriting factors for Comprehensive Medical, Medicare Supplement and Dental & Vision for investment income adjustment. | 6/28/24 | CA |
| 2024-13-CA | 2024 Year End | Update the RBC factors for Receivables for Securities. | 6/28/24 | CA |
| 2024-15-L | 2024 Year End | Modify pages L008 and L009 for Collateral Loans Backed by Mortgages | 6/28/24 | L |
| 2024-17-L | 2024 Year End | Added factor to page LR009 Line 2 Affiliate Mortgages – Residential – All Other | 6/28/24 | L |
| 2024-12-H(MOD) | 2024 Year End | Adjust the health care receivable factors in XR021 to include a tiered adjustment | 6/28/24 | H |
| 2024-14-P | 2024 Year End | Annual update of the industry underwriting factors (premium and reserve) in the PCRBC formula. | 6/28/24 | P/C |
| 2024-18-CA | 2024 Year-End | Adopted a .20 factor for the Total Residual Tranches or Interests in PR008 for P/C and XR008 for Health. | 6/28/24 | P/C & L |
| 2024 Year-End | Added a Line to LR033 to address the treatment of non-admitted affiliate | 4/30/24 | L | |
| 2024-05-L | 2024 Year-End | Added a Line to LR009 to address line 44 of the Asset Valuation Reserve Equity Component | 4/30/24 | L |
| 2024-08-CA | 2024 Year-End | Removed the Reference of “H0 Component” and “R0 Component” from the Column 12 Heading | 4/30/24 | H & P/C |
| 2024-10-P | 2024 Year-End | Addressed the Current Double-Counting Issue for Companies with Stop-Loss Premium | 4/30/24 | P/C |
| 2024-11-P | 2024 Year-End | Underwriting Risk Lines 4 and 8 Factors for year-ended 2024 and 2025 | 4/30/24 | P/C |
| 2023-17-CR | 2024 Year-End | Climate Scenario Analysis | 4/30/24 | P/C |
| 2024-02-CA | 2024 Year-End | 2024-02-CA Residual Tranches Structure ONLY for Property and Casualty and Health Formulas | 4/30/24 | H & P/C |
| 2024-01-P | 2024 Year-End | Change the Schedule P short-tail lines to show 10 years of data beginning in 2024 reporting. | 3/17/2024 | P/C |
| 2023-15-CR | 2024 Year-End |
Provides the structure for adding severe convective storm as one of the catastrophe perils for informational purposes only in the Rcat component. |
3/17/2024 | P/C |
| 2023-14-P | 2024 Year-End | Remove pet insurance from the inland marine line of business and add a new line of business to R4 and R5 components. | 3/17/2024 | P/C |
| 2023-13-CR | 2024 Year-End | Collect additional detail from on an insurers on the structure of their catastrophe reinsurance program on an annual basis. | 3/17/2024 | P/C |
| 2023-12-CA | 2024 Year-End | Modified pages XR002, XR010 and XR024 in the health formula and pages PR003, PR007, and PR031 in the property formula to clarify the line for Market Value in Excess Affiliated Stocks. This line includes both preferred and common stocks. | 12/02/2023 | H & P/C |
| 2023-11-H | 2024 Year-End | The proposal includes Medicare and Medicaid amounts in Column (1), Line (4) and Line (10) on pages XR013 & XR014. | 12/02/2023 | H |
| 2023-16-CR (Final) | 2023 Year-End | Final Release of the 2023 U.S. and non-U.S. Catastrophe Event List.
Release 1 of the 2023 U.S. and non-U.S. Catastrophe Event List. |
01/31/2024
12/02/2023 |
P/C |
| 2023-01-CA | 2023 Year-End | Clarified the instructions for stop loss premiums in the Underwriting Risk - Experience Fluctuation Risk, Other Underwriting Risk and Stop Loss Interrogatories. | 06/30/2023 | CA |
| 2022-16-CA | 2023 Year-End | Annual update of the underwriting factors for Comprehensive Medical, Medicare Supplement and Dental & Vision for the investment income adjustment. | 06/30/2023 | CA |
| 2023-10-IRE | 2023 Year-End | Adopted a .15 factor for the residual tranches sensitivity test. | 06/30/2023 | L |
| 2023-09-IRE | 2023 Year-End | Adopted a factor of .30 for year-end 2023 to then be replaced with a .45 factor beginning at year-end 2024 for residual tranches. | 06/30/2023 | L |
| 2023-07-L | 2023 Year-End | Align the CM6 and CM7 Life RBC factors for non-performing commercial & farm mortgages with RBC factors for Sch. A & BA investments. Adopted the same formula for calculating RBC amounts for non-performing & performing residential, commercial and farm mortgages. | 04/28/2023 | L |
| 2023-06-L | 2023 Year-End | Structural and instruction changes for the Life C-2 schedule including direct links to the Notes to Financial Statement | 04/28/2023 | L |
| 2023-05-L | 2023 Year-End | Removed the dual presentation of the Trend Test. | 04/28/2023 | L |
| 2023-04-IRE | 2023 Year-End | Added the residual tranches to the sensitivity test. | 04/28/2023 | L |
| 2023-03-IRE | 2023 Year-End | Added a line to isolate residual tranches reported on Schedule BA and the Asset Valuation Reserve. | 04/28/2023 | L |
| 2023-02-P (MOD) | 2023 Year-End |
Modified reserve factors for H/F, WC and CMP. Annual update of the Line 1 factors for pages PR017 and PR018. |
06/30/2023
04/28/2023 |
P |
| 2022-15-H | 2023 Year-End | The proposal renumbers the lines on page XR008. | 03/23/2023 | H |
| 2022-14-H | 2023 Year-End | This proposal removes the trend test for informational purposes only sentence from the instructions. | 03/23/2023 | H |
| 2022-13-CA | 2023 Year-End | This proposal modifies the line references on pages LR019, LR020 (Life) and PR019, PR020 (P/C) for changes to Schedule H, Part 1 in the Annual Statement. | 03/23/2023 | L, P/C |
| 2022-09-CA (MOD) | 2023 Year-End | The Health and P/C instructions and blank were modified with editorial changes to clarify the examples provided for Indirectly Owned Alien Insurance Affiliates/Subsidiaries and added a footnote to the % Owned column.
This proposal revised the instructions and structure for the Affiliated Investments for all lines of business. |
06/30/2023
03/23/2023 |
H, P/C
CA |
| 2022-12-CR | 2023 Year-End | This proposal includes the final release of the 2022 U.S. and non-U.S. catastrophe Event list (Jan. 1, 2022-Dec. 31, 2022) | 02/03/2023 | P/C |
| 2022-11-H | 2023 Year-End | This proposal updates the annual statement source descriptions and lines of business to align with the Analysis of Operations. | 12/14/2022 | H |
| 2022-10-H | 2023 Year-End | This proposal updates the Preferred Stock instructions to delete the reference to the bond factors. | 12/14/2022 | H |
| 2022-08-CR | 2023 Year-End | This proposal provides instructions to obtain permission to use the own model on PR027A, PR028B, PR027C, PR027 and PR027INT. | 12/14/2022 | P/C |
| 2022-07-P | 2023 Year-End | This proposal modifies the lines of business categories on page PR035. | 12/14/2022 | P/C |
| 2022-12-CR | 2022 Year-End | This proposal includes the first release of the 2022 U.S. and non-U.S. catastrophe Event list (Jan. 1, 2022-Sept. 30, 2022) | 11/18/2022 | P/C |
| 2022-04-CR | 2022 Year-End | This proposal adds Wildfire Events from 2013-2021 to the U.S. and non-U.S. Catastrophe Event Lists. | 08/11/2022 | P/C |
| 2022-06-L | 2022 Year-End | This proposal provides instructional changes and factor changes to page LR025. | 06/30/2022 | L/F |
| 2022-05-L | 2022 Year-End | This proposal adds instructions for Line 49.2 on page LR008 to include the total of residual tranches. | 06/30/2022 | L/F |
| 2022-02-P | 2022 Year-End | Annual update of the Line 1 factors for pages PR017 and PR018. | 06/30/2022 | P/C |
| 2022-03-L | 2022 Year-End | This proposal updates the blank for C2 Life Mortality on pages LR025, LR030, and LR031. | 04/28/2022 | L/F |
| 2022-01-P | 2022 Year-End | This proposal removes the trend test for information only footnote on page PR033. | 04/28/2022 | P/C |
| 2021-17-CR (MOD) | 2022 Year-End | This is a modified proposal of 2021-17-CR. The modification provides an exemption for smaller companies where the modeling requirements would impose a cost and compliance burden. This exemption is only intended to apply to the information-only reporting for wildfire. | 04/28/2022 | P/C |
| 2021-14-P | 2022 Year-End | This proposal removes the embedded 2% operational risk contained in the R3 credit risk component. | 03/28/2022 | P/C |
| 2021-17-CR | 2022 Year-End | The proposal adds wildfire as a catastrophe risk period for informational purposes only in the Rcat component. | 03/28/2022 | P/C |
| 2021-15-CR | 2022 Year-End | The proposal adds KCC as one of the approved third party commercial vendor catastrophe models. | 03/28/2022 | P/C |
| 2021-18-H-MOD | 2022 Year-End | This proposal incorporates benchmarking guidelines into the instructions for the investment income adjustment in the underwriting risk factors for Comprehensive Medical, Medicare Supplement and Dental & Vision lines. | 03/28/2022 | H |
| 2021-16-CR | 2021 Year-End | This proposal includes the 2021 U.S. and non-U.S. catastrophe Event list. | 01/27/2022 | P/C |
| 2021-04-CA | 2021 Year-End | This proposal includes a .5% investment income adjustment to the the Health Underwriting Risk Factors for Comprehensive Medical, Medicare Supplement and Dental/Vision lines of business across all lines of business. | 07/28/2021 | CA |
| 2021-07-CA | 2021Year-End | The proposal updates the Receivables for Securities factors across all lines of business. | 06/30/2021 | CA |
| 2021-09-H | 2021 Year-End | BONDS: The proposal incorporates the 20 designation bond factors for the Off-Balance Sheet Collateral and Schedule DL, Bonds and Asset Concentration pages in the health formula. | 06/30/2021 | H |
| 2021-11-L | 2021 Year-End | BONDS: The proposal incorporates the 20 designation bond factors for the Off-Balance Sheet Collateral and Schedule DL, Bonds and Asset Concentration pages in the life formula. | 06/30/2021 | L |
| 2021-08-P | 2021 Year-End | BONDS: The proposal incorporates the 20 designation bond factors for the Off-Balance Sheet Collateral and Schedule DL, Bonds and Asset Concentration pages in the property and casualty formula. | 06/30/2021 | P |
| 2021-06-L | 2021 Year-End | This proposal updates the RBC formula for real estate to reflect updated experience and analysis. | 06/30/2021 | L |
| 2021-12-L | 2021 Year-End | This proposal changes the description on Line 15 on page LR016 to allow for the inclusion of amounts held for reciprocal jurisdiction reinsurance. | 06/30/2021 | L |
| 2021-13-L | 2021 Year-End | This proposal presents base factors and correlation and guardrail factors for the longevity risk charge. | 06/30/2021 | L |
| 2021-03-P | 2021 Year-End | This proposal adds examples as a guide to portray the intent of the R3 ratings instructions. | 06/30/2021 | P |
| 2021-05-P | 2021 Year-End | Annual update of the Line 1 factors for pages PR017 and PR018. | 06/30/2021 | P |
| 2021-03-P | 2021 Year-End | Added examples as a guide to portray the intent of the R3 ratings instructions. | 04/29/2021 | P |
| 2021-02-CA | 2021 Year-End | Clarifies that both incentives and bonuses are to be included in the Managed Care Credit. | 04/29/2021 | CA |
| 2021-01-L | 2021 Year-End | The proposal updates the RBC calculation for Real Estate to reflect updated experience and analysis. | 04/29/2021 | L |
| 2020-11-CR | 2021 Year-End | The change removed the embedded 3% operational risk component contained in the reinsurance contingent credit risk factor of Rcat. | 03/23/2021 | P/C |
| 2020-08-CR | 2021 Year-End | Added instructions to page PR027 Interrogatories that clarify how insurers with no gross exposure to earthquake or hurricane should complete the Interrogatories | 03/23/2021 | P/C |
| 2020-10-CA | 2021 Year-End | Modified the structure for the bonds to pull directly from Schedule D, Schedule DA, and Schedule E footnotes for the 20 RBC bond designations. | 03/23/2021 | H, P/C |
| 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 |