§431:3-402  Risk-based capital reports. 
(a)  Every domestic insurer, on or before each March 1 (the "filing
date"), shall prepare and submit to the commissioner a report of its
risk-based capital levels as of the end of the calendar year just ended, in a
form and containing any information that is required by the risk-based capital
instructions.  In addition, every domestic insurer shall file its risk-based
capital report:



(1)  With the National Association of Insurance
Commissioners in accordance with the risk-based capital instructions; and



(2)  With the insurance commissioner in any state in
which the insurer is authorized to do business, if the commissioner has
notified the insurer of its request in writing, in which case the insurer shall
file its risk-based capital report not later than the later of:



(A)  Fifteen days from the receipt of notice to
file its risk-based capital report with that state; or



(B)  The filing date.



(b)  A life or accident and health or sickness
insurer's risk-based capital shall be determined in accordance with the formula
set forth in the risk-based capital instructions.  The formula shall take into
account and may adjust for the covariance among the following, which shall be
determined in each case by applying the factors in the manner set forth in the
risk-based capital instructions:



(1)  The risk with respect to the insurer's assets;



(2)  The risk of adverse insurance experience with
respect to the insurer's liabilities and obligations;



(3)  The interest rate risk with respect to the
insurer's business; and



(4)  All other business risks and any other relevant
risks that are set forth in the risk-based capital instructions.



(c)  A property and casualty insurer's
risk-based capital shall be determined in accordance with the formula set forth
in the risk-based capital instructions.  The formula shall take into account
and may adjust for the covariance among the following, which shall be
determined in each case by applying the factors in the manner set forth in the
risk-based capital instructions:



(1)  Asset risk;



(2)  Credit risk;



(3)  Underwriting risk; and



(4)  All other business risks and such other relevant
risks as are set forth in the risk-based capital instructions.



(d)  An excess of capital over the amount
produced by the risk-based capital requirements contained in this part and the
formulas, schedules, and instructions referenced in this part is desirable in
the business of insurance.  Accordingly, insurers shall seek to maintain
capital above the risk-based capital levels required by this part.  Additional
capital is used and useful in the business of insurance 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 part.



(e)  If a domestic insurer files a risk-based
capital report which, in the judgment of the commissioner, is inaccurate, then
the commissioner shall adjust the risk-based capital 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.  A risk-based capital
report as so adjusted is referred to as an adjusted risk-based capital report.
[L 1994, c 190, pt of §1; am L 1995, c 61, §2 as superseded by c 232, §4; am L
1997, c 75, §4; am L 1998, c 71, §2; am L 1999, c 128, §2; am L 2003, c 212,
§26]