Ins 51.01(16)(f)1. 1. The risk based capital plan or revised risk based capital plan submitted by the insurer is, in the judgment of the commissioner, unsatisfactory.

Ins 51.01(16)(f)2. 2. Such notification constitutes a regulatory action level event with respect to the insurer, provided the insurer has not challenged the determination under s. Ins 51.50.

Ins 51.01(16)(g) (g) If, under s. Ins 51.50, the insurer challenges a determination by the commissioner under par. (f), the notification by the commissioner to the insurer that the commissioner has, after a hearing, rejected such challenge.

Ins 51.01(16)(h) (h) Notification by the commissioner to the insurer that the insurer has failed to adhere to its risk based capital plan or revised risk based capital plan, but only if such failure has a substantial adverse effect on the ability of the insurer to eliminate the company action level event in accordance with its risk based capital plan or revised risk based capital plan and the commissioner has so stated in the notification, provided the insurer has not challenged the determination under s. Ins 51.50.

Ins 51.01(16)(i) (i) If, under s. Ins 51.50, the insurer challenges a determination by the commissioner under par. (h), the notification by the commissioner to the insurer that the commissioner has, after a hearing, rejected the challenge.

Ins 51.01(17) (17) “Regulatory action level risk based capital” means, with respect to any insurer, the product of 1.5 and its authorized control level risk based capital.

Ins 51.01(18) (18) “Revised risk based capital plan” means a risk based capital plan prepared by an insurer with or without the commissioner’s recommendation after the original plan is rejected by the commissioner.

Ins 51.01(19) (19) “Risk based capital instructions” means the risk based capital report including risk based capital instructions adopted by the NAIC, as of September 1, 1996, and, if approved in writing by the commissioner, the risk based capital report and instructions as amended by the NAIC from time to time in accordance with the procedures adopted by the NAIC.

Ins 51.01(20) (20) “Risk based capital level” means an insurer’s company action level risk based capital, regulatory action level risk based capital, authorized control level risk based capital, or mandatory control level risk based capital.

Ins 51.01(21) (21) “Risk based capital plan” means a comprehensive financial plan containing the elements specified in s. Ins 51.15 (1).

Ins 51.01(22) (22) “Risk based capital report” means the report required under s. Ins 51.05.

Ins 51.01(23) (23) “Total adjusted capital” means the sum of all of the following:

Ins 51.01(23)(a) (a) An insurer’s statutory capital and surplus.

Ins 51.01(23)(b) (b) Such other items, if any, as the risk based capital instructions may provide.

Ins 51.01 History History: Cr. Register, December, 1996, No. 492, eff. 1-1-97; cr. (8m), r. (9) (a) 1., 2., renum. (9) (a) 3. to 8. to be (9) (a) 1. to 6., am. (10), Register, May, 1999, No. 521, eff. 6-1-99; CR 10-077: am. (4) (a) 2., (10), and (14); cr. (4) (a) 3. and 4., r. (9) (a) 3., renum. (9) (a) 4., 5., and 6. to be (9) (a) 3., 4., and 5. Register December 2010 No. 660, eff. 1-1-11; CR 13-059: am. (4) (a) 2. Register June 2014 No. 702, eff. 7-1-14; correction in (9) (a) 2. made under s. 13.92 (4) (b) 7, Stats., Register June 2014 No. 702; CR 22-071: am. (21) Register June 2023 No. 810, eff. 7-1-23.

Ins 51.05 Ins 51.05 Risk based capital reports.

Ins 51.05(1) (1) Every domestic insurer shall, on or prior to each March 1, prepare and submit a report of its risk based capital levels as of the end of the calendar year just ended, in a form and containing such information as is required by the risk based capital instructions. For the purpose of this section filing of a risk based capital report with the NAIC constitutes filing with the commissioner. A domestic insurer shall file its risk based capital report with all of the following:

Ins 51.05(1)(a) (a) The NAIC in accordance with the risk based capital instructions.

Ins 51.05(1)(b) (b) The insurance commissioner in any state in which the insurer is authorized to do business, if the insurance commissioner has notified the insurer of its request in writing, in which case the insurer shall file its risk based capital report not later than the later of:

Ins 51.05(1)(b)1. 1. Fifteen days from the receipt of notice to file its risk based capital report with that state.

Ins 51.05(1)(b)2. 2. March 1.

Ins 51.05(1g) (1g) The risk based capital of health maintenance organization insurers and of insurers writing only limited service health organization business shall be determined in accordance with the formula set forth in the risk based capital instructions. The formula shall take into account, and may adjust for the covariance between each of the following:

Ins 51.05(1g)(a) (a) Asset risk.

Ins 51.05(1g)(b) (b) Credit risk.

Ins 51.05(1g)(c) (c) Underwriting risk.

Ins 51.05(1g)(d) (d) All other business risks and such other relevant risks as are set forth in the risk based capital instructions.

Ins 51.05(1r) (1r) The risks identified under sub. (1g) shall be provided for as determined in each case by applying the factors in the manner set forth in the risk based capital instructions.

Ins 51.05(2) (2) A life or health insurer’s risk based capital shall be determined in accordance with the formula set forth in the risk based capital instructions. The formula shall take into account, and may adjust for the covariance between each of the following:

Ins 51.05(2)(a) (a) The risk with respect to the insurer’s assets.