Ch. 339                                        1995 LAWS OF MARYLAND

1.        15 DAYS AFTER RECEIPT OF THE WRITTEN REQUEST TO
FILE ITS RBC REPORT WITH THAT STATE; OR

2.        THE FILING DATE.

(B) IF A DOMESTIC INSURER FILES AN RBC REPORT THAT, IN THE JUDGMENT
OF THE COMMISSIONER IS INACCURATE, THE COMMISSIONER SHALL:

(1) ADJUST THE RBC REPORT TO CORRECT THE INACCURACY; AND

(2) NOTIFY THE INSURER OF THE ADJUSTMENT, INCLUDING A
STATEMENT OF THE REASON FOR THE ADJUSTMENT.

4-304.

(A) (1) A LIFE 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)      THE RISK WITH RESPECT TO THE LIFE INSURER'S ASSETS;

(II)     THE RISK OF ADVERSE INSURANCE EXPERIENCE WITH
RESPECT TO THE LIFE INSURER'S LIABILITIES AND OBLIGATIONS;

(III)    THE INTEREST RATE RISK WITH RESPECT TO THE LIFE
INSURER'S BUSINESS; AND

(IV)    ALL OTHER BUSINESS RISKS AND OTHER RELEVANT RISKS AS
SET FORTH IN THE RBC INSTRUCTIONS.

(B) (1) A PROPERTY AND CASUALTY 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.

4-305.

(A) A COMPANY ACTION LEVEL EVENT OCCURS WHEN:

(1) AN INSURER FILES AN RBC REPORT THAT INDICATES THAT:

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