Minimum Risk-Based Capital Clause Samples
The Minimum Risk-Based Capital clause establishes a required threshold of capital that an entity, typically a financial institution or insurer, must maintain relative to its risk exposure. This requirement is calculated based on the types and levels of risks the entity undertakes, such as credit, market, or operational risks, and is often expressed as a ratio or percentage of risk-weighted assets. By mandating a minimum capital buffer, the clause ensures that the entity remains financially stable and capable of absorbing potential losses, thereby protecting stakeholders and maintaining confidence in the financial system.
Minimum Risk-Based Capital. The Borrower will cause each Significant Insurance Subsidiary to maintain a ratio of (a) Total Adjusted Capital (as defined in the Risk-Based Capital Act or in the rules and procedures prescribed from time to time by the NAIC with respect thereto) to (b) the Company Action Level RBC (as defined in the Risk-Based Capital Act or in the rules and procedures prescribed from time to time by the NAIC with respect thereto) of at least 150%.
Minimum Risk-Based Capital. The Borrower will not permit the Risk-Based Capital for any Material Regulated Insurance Company to be less than 400%.
Minimum Risk-Based Capital. Permit the Risk Based Capital Ratio of Tower Insurance Company of New York as of any fiscal year end to be less than 175%.
Minimum Risk-Based Capital. PLIC shall, as of the last day of each calendar quarter, have a Risk Based Capital Ratio of not less than 2.50 to 1
Minimum Risk-Based Capital. The Borrower shall not permit ▇▇▇▇▇▇ ▇▇▇▇ Life Insurance Company or the P/C Subsidiaries (taken as a whole) to maintain, as of the end of any Fiscal Year, a ratio (expressed as a percentage) of (a) Total Adjusted Capital (as defined in the Risk-Based Capital (RBC) for Insurers Act in the applicable state of domicile or in the rules and procedures prescribed from time to time by the NAIC with respect thereto) to (b) the Company Action Level RBC (as defined in the Risk-Based Capital Act or in the rules and procedures prescribed from time to time by the NAIC with respect thereto) of less than 300%.
Minimum Risk-Based Capital. (a) Holdings will not permit the Risk Based Capital Ratio for Trenwick America Reinsurance Corporation to be less than 325%.
(b) Holdings will not permit the Risk Based Capital Ratio for any Regulated Insurance Company which is a Domestic Subsidiary (other than Trenwick America Reinsurance Corporation) to be less than 300%.
Minimum Risk-Based Capital. The Borrower shall not permit the Life Subsidiaries (taken as a whole) or the P/C Subsidiaries (taken as a whole) to maintain, as of the end of any Fiscal Year, a ratio (expressed as a percentage) of (a) Total Adjusted Capital (as defined in the Risk-Based Capital (RBC) for Insurers Act in the applicable state of domicile or in the rules and procedures prescribed from time to time by the NAIC with respect thereto) to (b) 1 80% of Net Worth as of March 31, 2019.
Minimum Risk-Based Capital. Not permit the Risk Based Capital Ratio for Kinsale Insurance to be less than 350% for any Fiscal Year.
Minimum Risk-Based Capital. Permit the ratio of (i) “total adjusted capital” (within the meaning of the Risk-Based Capital for Insurers Model Act as promulgated by the NAIC as of the date hereof (the “Model Act”)) of OARC to (ii) 2 times the “Authorized Control Level Risk-Based Capital” (within the meaning of the Model Act) of OARC to be less than one hundred seventy five percent (175%), as of the last day of any fiscal quarter, beginning with the fiscal quarter ending December 31, 2009.”
Minimum Risk-Based Capital. The Borrower will not permit the Risk-Based Capital for any Subsidiary listed below to be less than the percentage set forth below opposite such Subsidiary: Subsidiary Percentage ----------- ------------ HIC 275% Northwestern National 275%