Pennsylvania Code
Pennsylvania Code & Bulletin
COMMONWEALTH OF PENNSYLVANIA

• No statutes or acts will be found at this website.

The Pennsylvania Bulletin website includes the following: Rulemakings by State agencies; Proposed Rulemakings by State agencies; State agency notices; the Governor’s Proclamations and Executive Orders; Actions by the General Assembly; and Statewide and local court rules.

PA Bulletin, Doc. No. 96-703

NOTICES

Risk-Based Capital Reporting Requirements; Notice No. 1996-04

[26 Pa.B. 2061]

   On April 8, 1996, the Insurance Commissioner (Commissioner) issued an Order exempting the insurers described in this notice from reporting RBC results in annual financial statement blanks.

Statutory Authority

   The Commissioner has the statutory authority under section 320(a)(2) of the Insurance Company Law, 40 P. S. § 443(a)(2), to provide by order that insurers may deviate from the annual and quarterly statement instructions and accounting practices and procedures manuals prescribed by the National Association of Insurance Commissioners (NAIC).

Basis and Effect of the Order

   The NAIC annual statement blank and instructions require insurers to report RBC as calculated using a prescribed formula. Analysis performed by the Insurance Department shows that the results produced by the RBC formula for the insurers identified in the Order have limited value as a tool for monitoring the financial solvency of those insurers. Therefore, the Order provides that, effective April 8, 1996, domestic property and casualty insurers that are licensed to do business only in the Commonwealth, write only homeowners and farmowners multi-peril coverages (including property lines only), and write direct annual premium volume of $2,000,000 or less are exempt from reporting RBC results in annual statement blanks. The Order remains in effect unless and until modified or revoked by the Commissioner.

Contact Person

   Questions concerning this notice may be directed to Stephen Johnson, Director of the Bureau of Examinations, Insurance Department, at (717) 783-2142.

LINDA S. KAISER,   
Insurance Commissioner

[Pa.B. Doc. No. 96-703. Filed for public inspection April 26, 1996, 9:00 a.m.]


No part of the information on this site may be reproduced for profit or sold for profit.

This material has been drawn directly from the official Pennsylvania Bulletin full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.