Calculation of RBC

Act 285 of 1921, § 504-B, under "INSURANCE DEPARTMENT ACT OF 1921, THE".

Act 285 of 1921, § 504-B

Section 504-B. Calculation of RBC.--(a) A health organization's RBC shall be determined in accordance with the formula set forth in the RBC instructions.

(b) The formula shall use and may adjust for the covariance between the following risks determined in each case by applying the factors in the RBC instructions:

(1) Asset risk.

(2) Credit risk.

(3) Underwriting risk.

(4) All business and other risks set forth in the RBC instructions.

(504-B added June 22, 2000, P.L.457, No.62)