(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.
Structure Maryland Statutes
Title 4 - General Requirements for Insurers
Subtitle 3 - Risk Based Capital Standards for Insurers
Section 4-304 - Risk Based Capital Requirements
Section 4-305 - Company Action Level Event
Section 4-306 - Regulatory Action Level Event
Section 4-307 - Authorized Control Level Event
Section 4-308 - Mandatory Control Level Event
Section 4-309 - Challenges by Insurer
Section 4-310 - Confidentiality of Rbc Reports and Plans
Section 4-311 - Supplemental to Other Laws; Regulations; Exemptions