Risk-based Capital Statistic (rbcs)

Definition of "Risk-based capital statistic (rbcs)"

Beverly Richardson real estate agent

Written by

Beverly Richardsonelite badge icon

Charles Rutenberg Realty Inc.

Ratio of authorized control level risk-based capital of an insurance company to its total adjusted capital. This statistic determines regulatory action taken by the state's insurance commissioner. If the RBCS is greater than 200%, no regulatory action is required. If the RBCS is between 150 and 200%, the insurer must file a plan of corrective action with the insurance commissioner as well as provide an explanation of why the RBCS standards were not met. If the RBCS is between 100 and 150%, the insurer must file a plan of corrective action with the insurance commission and the insurance commissioner will examine the insurer. If the RBCS is between 70 and 150%, the insurance commissioner may seize the insurer. If the RBCS is below 70%, the insurance commissioner is required to liquidate or rehabilitate the insurer.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Property loss in which the insured peril is the proximate cause (an unbroken chain of events) of the damage or destruction. Most basic property insurance policies (such as the standard fire ...

Insured's age at a particular point in time. For example, many term life insurance policies allow an insured to convert to permanent insurance without a physical examination at the ...

Dividends of a participating life insurance policy deemed by the Internal Revenue Service to be a return of a portion of premiums and thus not subject to taxation. ...

Entitlement of an employee to benefits immediately upon entering a retirement plan. As benefits are earned, they are credited to the employee's account. These "portable" future benefits can ...

Facility used to gain access to the reinsurance markets by the captive insurance companies for their large property exposures. The facility re-insures a relatively small percentage of its ...

Unfunded trust that acts as the owner of a life insurance policy. The trust receives a donor's cash payments on a periodic basis, from which the beneficiary of the trust has a specified ...

Addition to the pure cost of insurance that reflects agent commissions, premium taxes, administrative costs associated with putting business on an insurance company's books, and ...

Coverage against a loss resulting from the forcible entry of a safe. In order for this coverage to be applicable, there must be signs of forcible entry into the premises in which the safe ...

Calculations involving the mortality rate of a company's insureds and the rate of return on the company's investments. It is used in calculating the prospective reserve. ...

Popular Insurance Questions