Md. Code Ann., Ins. § 4-304
Determination of life insurer's or fraternal benefit society’s risk based capital
Effective Oct 1, 2013Added 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.State of Maryland
(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.
(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.
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.