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The NAIC has developed a risk-based capital (RBC) formula for all health plans that accept...

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The NAIC has developed a risk-based capital (RBC) formula for all health plans that accept risk. One true statement about the RBC formula for health plans is that it

A.

is a set of calculations, based on information in a health plan's annual financial report, that yields a target capital requirement for the organization

B.

fails to take into account a health plan's underwriting risk, which is the risk that the premiums the health plan receives will be insufficient to pay for the healthcare services it provides to its plan members

C.

applies to all health plans in the United States

D.

fails to assess the specific level of risk faced by each health plan

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