Defined terms for the annuity market and lifetime income landscape.
Risk-based capital is the NAIC's standard framework for measuring the capital adequacy of US insurance carriers, calculating a required capital amount that scales with the specific risks each carrier bears and comparing it to actual capital to determine whether intervention is warranted.
The risk-based capital ratio is the standard summary measure of an insurance carrier's capital adequacy, calculated as the ratio of the carrier's total adjusted capital to its authorized control level risk-based capital amount and reported as a percentage.
A roll-up rate is the contractually specified annual rate at which the benefit base of a deferred annuity rider increases during a defined accumulation period, separate from and independent of the contract's actual investment performance.
