Subd. 1. General requirements.

Every society shall, on or before each March 1, 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 the information required by the risk-based capital instructions. In addition, every society shall file its risk-based capital report with the NAIC according to the risk-based capital instructions.

Subd. 2. Specific requirements.

A society's risk-based capital must be determined according to the formula set forth in the risk-based capital instructions. The formula must take into account, and may adjust for the covariance between:

1. (1) the risk with respect to the society's assets;
2. (2) the risk of adverse insurance experience with respect to the society's liabilities and obligations;
3. (3) the interest rate risk with respect to the society's business; and

4. (4) all other business risks and other relevant risks set forth in the risk-based capital instructions;

   determined in each case by applying the factors in the manner set forth in the risk-based capital instructions.

Subd. 3. Adjusted risk-based capital report.

If a society files a risk-based capital report that 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 society of the adjustment. The notice must 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."