The mission of the Capital Adequacy (E) Task Force (CADTF) is to determine the amount of capital an insurer should be required to hold to avoid triggering various specific regulatory actions. It pursues that objective through the Risk-Based Capital formula, which largely consists of a series of risk factors that are applied to selected assets, liabilities, or other specific company financial data to establish the threshold levels generally needed to bear the risk arising from that item.

2027 Proposed Charges

1. To carry out its mission, the Task Force is charged with carrying out the following initiatives: 
   
   1. Evaluate emerging “risk” issues for referral to the RBC working groups/subgroups for certain issues involving more than one RBC formula. 
   2. Monitor emerging and existing risks relative to their consistent or divergent treatment in the three RBC formulas. 
   3. Review and evaluate company submissions for the schedule and corresponding adjustment to total adjusted capital (TAC).
   4. Monitor changes in accounting and reporting requirements resulting from the adoption and continuing maintenance of the Accounting Practices and Procedures Manual, Annual Statement Blanks, and the Valuation Manual to ensure that model laws, publications, formulas, analysis tools, etc., supported by the Task Force are aligned with each other and continue to meet regulatory objectives. 
   5. Monitor and evaluate changes to the Purposes and Procedure Manual of the NAIC Investment Analysis Office to determine if assets or, specifically, investments evaluated by the NAIC Securities Valuation Office are relevant to the RBC formula in determining the threshold capital and surplus for all insurance companies or whether reporting and analytical tools available to the regulator are more appropriate means to address the risk. 
   6. Evaluate refinements to the existing NAIC RBC formula and consider improvements and revisions to the various RBC Blanks to (1) conform the RBC blanks to changes made in other areas of the NAIC to promote uniformity (when it is determined to be necessary); and (2) oversee the development of additional reporting formats within the existing RBC Blanks as needs are identified.
   7. Continually review the RBC instructions, blanks and forecastings and revise as appropriate.

The mission of the Capital Adequacy (E) Task Force is to evaluate and recommend appropriate refinements to capital requirements for all types of insurers.

2026 Charges

1. The Capital Adequacy (E) Task Force will:
   1. Evaluate application of the Risk-Based Capital (RBC) formula and emerging “risk” issues for referral to RBC working groups/subgroups for certain issues involving more than one RBC formula. Monitor emerging and existing risks relative to their consistent or divergent treatment in the three RBC formulas.
   2. Review and evaluate company submissions for the schedule and corresponding adjustment to total adjusted capital (TAC).
   3. Evaluate relevant historical data and apply defined statistical safety levels over appropriate time horizons in developing recommendations for revisions to the current asset risk structure and factors in each of the RBC formulas.
   4. Continually review the RBC instructions, blanks and forecastings and revise as appropriate.

The following groups report to the Capital Adequacy (E) Task Force:

• Health Risk-Based Capital (E) Working Group
• Life Risk-Based Capital (E) Working Group
• Property Risk Based Capital (E) Working Group
• Risk-Based Capital Investment Risk and Evaluation (E) Working Group