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§ 4-304. Determination of life insurer's or fraternal benefit society’s risk based capital

West's Annotated Code of MarylandInsuranceEffective: October 1, 2013

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 4. General Requirements for Insurers
Subtitle 3. Risk Based Capital Standards for Insurers (Refs & Annos)
Effective: October 1, 2013
MD Code, Insurance, § 4-304
§ 4-304. Determination of life insurer's or fraternal benefit society’s risk based capital
Currentness
In general
(a)(1) A life insurer's or fraternal benefit society's risk based capital shall be determined in accordance with the formula set forth in the RBC instructions.
(2) By applying the factors in the manner set forth in the RBC instructions, the formula shall take into account and may adjust for the covariance between:
(i) the risk with respect to the life insurer's or fraternal benefit society's assets;
(ii) the risk of adverse insurance experience with respect to the life insurer's or fraternal benefit society's liabilities and obligations;
(iii) the interest rate risk with respect to the life insurer's or fraternal benefit society's business; and
(iv) all other business risks and other relevant risks as set forth in the RBC instructions.
Determination of insurer’s risk based capital
(b)(1) Except as provided in subsection (a) of this section, an insurer's risk based capital shall be determined in accordance with the formula set forth in the RBC instructions.
(2) By applying the factors in the manner set forth in the RBC instructions, the formula shall take into account and may adjust for the covariance between:
(i) asset risk;
(ii) credit risk;
(iii) underwriting risk; and
(iv) all other business risks and other relevant risks as set forth in the RBC instructions.

Credits

Added by Acts 1995, c. 339, § 2, eff. Oct. 1, 1997. Amended by Acts 2000, c. 331, § 2, eff. July 1, 2000; Acts 2013, c. 385, § 1, eff. Oct. 1, 2013.
Formerly Art. 48A, § 741.
MD Code, Insurance, § 4-304, MD INSURANCE § 4-304
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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