Risk-Based Capital (RBC) NAIC Filing Update (2/23/12)

Last year, the NAIC instituted a requirement that all fraternals must submit their RBC calculation electronically when submitting 2011 annual statement information, and that fraternals must use the software product of one of three vendors identified by the NAIC. The Alliance has contracted with Bailey, Ramsey & Associates to test the RBC-calculating products of these approved software vendors. Here is the status of the testing being performed by Bailey, Ramsey & Associates:

• Booke Seminars: The product has been tested and it is working correctly. Note that there have been a handful of minor issues identified over the past few weeks, and so it is important for users to download the most current version of the Booke software that includes RBC fixes.
• FSI: The product has been tested and creates accurate Fraternal RBC calculations. Please note that users may find it easy to overlook the manual entries needed for the mortgage and real estate worksheets at the end of the software module. This is just a caution and not a problem with the software.
• Sungard: The calculations work correctly. At the end of the process, when it is time to run all of the crosscheck errors, a bogus error kicks out related to RBC page FR033. The user should override this error message – there is no problem. The crosscheck is comparing “apples to oranges” for one item. Sungard will not be sending an update to correct this minor issue.

NOTE: For purchase, the NAIC offers RBC Overview & Instructions – Fraternal (RBC-F1), and it contains a CD-ROM on the inside cover.  The CD-ROM includes an RBC spreadsheet tool similar to what the Alliance created and provided to members in the past several years.  This tool cannot be used to submit your RBC to the NAIC, but it may be helpful.  It costs only $50 and can be ordered through the NAIC by clicking here.

Please contact the Alliance with any questions at info@fraternalalliance.org.

Booke Seminars Offers Fraternals First-Year Discount
The Alliance is pleased to report that Booke Seminars is offering Alliance members $100 off the price of their RBC software product. Booke Seminars has been a supporter of the fraternal system for decades and is sensitive to the somewhat sudden requirement that affects all fraternals. This one-time discount is offered on software used in the filing of 2011 data to the NAIC by March 1, 2012. The Alliance thanks Booke Seminars for this generous offer. For details, please contact Booke Seminars at sales@bookeseminars.com.