Risk Based Capital

[FranH-EH]

We are a Health Insurance Company and have a few questions related to RBC. Should we be including on page XR002 Affiliated Companies Risk ? details all Affiliates owned by the Reporting Insurer? Or should we be excluding the Holding Company and subsidiaries and looking at the lowest level of ownership for each affiliated investment?

Also, should XR002 exclude investments in affiliates which are Limited liability companies (LLCs) which are captured on Schedule BA and are reported on the balance sheet on line 8 Other Invested Assets? We have already captured these LLCs on Page XR007 Line 26 Other Long-term invested assets. If we include these affiliated investments on XR002 and XR007 we would be double counting.

[Russ]

XR002 is completed only if the reporting entity has ownership in any affiliates within their holding company group.

XR002 is for stock ownership in affiliates; it excludes investments in LLCs, partnerships and joint ventures as those are captured in other Health RBC forms.