Risk-based Capital Statistic (rbcs)
Definition of "Risk-based capital statistic (rbcs)"
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.
Popular Insurance Terms
Provision in the extended coverage endorsement stating that smoke damage is covered when it results from the sudden, unusual, and faulty operation of an on-premises cooking or heating unit, ...
Form of state rating legislation that allows each property/liability insurer to choose between using rates set by a bureau or its own rates. Individual states regulate insurers and approve ...
Means of selling and servicing property and casualty insurance through agents who represent different companies. The agents own the records of the policies they sell. ...
Loss of a key person due to death, disability, sickness, resignation, incarceration, or retirement. Because of the expertise of such an individual, there could be a loss of income, market ...
Coverage for items of property being delivered to a customer. The means of transportation covered include such common carriers as aircraft, railroads, trucks, express carrier, and other ...
Latin for "Let the superior reply." That is, an employer is liable for the torts of employees that result from their employment. For example, an insurance company (the master) acts through ...
Income supplement program under Social Security to provide a minimum monthly income to aged, blind, and disabled persons. The SSI payments, which were introduced in January 1974, make up ...
Coverage for a shipper (owner/sender) for property damage or loss of goods in transit through the post office. A trip transit insurance policy specifically excludes coverages on property ...
Insurance coverage that protects a contractor or other type of business providing a service for expenses incurred in the event a contract is not ratified by a foreign government. For ...
Have a question or comment?
We're here to help.