What Does Risk Based Capital Ratio Mean?

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What does Risk Based Capital Ratio mean? Read on to discover the definition & meaning of the term Risk Based Capital Ratio - to help you better understand the language used in insurance policies.

Risk Based Capital Ratio

Risk Based Capital Ratio

(RBC) is a ratio used to identify insurance companies that are poorly capitalized. Calculated by dividing the company's capital by the minimum amount of capital regulatory authorities have deemed necessary to support the insurance operations.

We hope the you have a better understanding of the meaning of Risk Based Capital Ratio.

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