# 2026 Life / Fraternal RBC reconciliation

Reviewed October 8, 2026. Status: adopted-amendment reconstruction; full filing reconciliation remains open.

## Source availability

The [2026 Life and Fraternal RBC newsletter](https://content.naic.org/sites/default/files/inline-files/01-2026-rbc-newsletter-life-and-fraternal.pdf), PDF page 4, says the consolidated forecasting and instructions publication is typically issued around November 1. The [NAIC publication listing](https://content.naic.org/publications?field_publication_category_target_id=All&name=risk-based) still offered RBCL-2025 when reviewed. The 2026 consolidated package has not been obtained. This is an observed availability limit, not a confirmed future release date. The newsletter also identifies LR001–LR049 and applicable actuarial certifications as the filing set; forecasting output does not satisfy electronic filing requirements.

## Work completed

- Traced the existing engine and reviewed the adopted-change register for year-end 2026.
- Added 12 separate comparison points across LR002, LR031 and LR033. Each reports calculated dollars, normalized reference dollars, the difference and a check result.
- Added explicit reference provenance, reporting year, units, absolute-dollar tolerance and rounding basis. Missing references remain untested. A zero is never inferred for a missing monetary input.
- Added an export containing inputs, source links, differences and unresolved gates. Inputs in this new workspace are not saved across reloads.
- Retained the historical basis of existing Insurer Impact estimates and saved scenarios. The new checks reconstruct selected 2026 amendment formulas separately.

## Adopted-change register

Effective dates are checked against the [Capital Adequacy adopted-modifications register](https://content.naic.org/capital_adequacy_task_force.htm), updated July 1, 2026. An exposure date or a proposal number containing 2025 does not establish its effective filing year.

| Adopted item | 2026 filing effect | Calculator reconciliation status |
|---|---|---|
| [2025-22-IRE](https://content.naic.org/sites/default/files/inline-files/Proposal%202025-22-IRE%20Final.pdf) | Separate long-term CLO reporting in LR002 | Structure mapped; input classification remains evidence-dependent |
| [2026-12-IRE MOD](https://content.naic.org/sites/default/files/inline-files/2026-12-ire.pdf) | CLO factors and portfolio adjustments | 40 base factors already implemented; added LR002 lines 26–27 checks |
| [2026-01-L](https://content.naic.org/sites/default/files/inline-files/2026-01-l.pdf) | AVR references across asset schedules | Source inventory complete; cross-schedule implementation open |
| [2026-02-L](https://content.naic.org/sites/default/files/inline-files/2026-02-l.pdf) | LR009 line 2 expands 0.0068 treatment to eligible unaffiliated residential BA mortgages | Unsupported asset route remains blocked |
| [2026-05-CA](https://content.naic.org/sites/default/files/inline-files/Proposal%202026-05-CA%20Final.pdf) | Removes investment affiliate code 4; changes affected schedules | Selected LR031 and LR033 formula checks added; affiliation classification open |
| [2026-07-L](https://content.naic.org/sites/default/files/inline-files/Proposal%202026-07-L%20Final.pdf) | LR025-A longevity reinsurance structure, LR030 and LR031 cross-references | Mapped; C2 remains supplied externally |
| [2025-14-L MOD](https://content.naic.org/sites/default/files/inline-files/Proposal%202025-14-L%20Final.pdf) | GOES updates to C3 Phase I / II | Requires external actuarial model results and supporting certification |
| [2025-17-L](https://content.naic.org/sites/default/files/inline-files/2025-17-L%20RBC_Proposal_Form%20LR027%20Scope%20Clarification.pdf) | VM-21 payout-annuity scope clarification | Source mapped; no automatic C3 classification |
| [2026-06-L MOD](https://content.naic.org/sites/default/files/inline-files/2026-06-l.pdf) | LR027 source-reference changes | Crosswalk open |
| [2025-15-CA MOD](https://content.naic.org/sites/default/files/inline-files/Proposal%202025-15-CA%20Final.pdf) | A&H underwriting structure and alternative charge | Upstream C2, C4 and tax calculation open |
| [2026-03-CA](https://content.naic.org/sites/default/files/inline-files/2026-03-ca-underwritingriskinvincomeupdate.pdf) | Separate investment-income adjustment factors for affected health lines | Upstream underwriting calculation open |
| [2026-09-L MOD](https://content.naic.org/sites/default/files/inline-files/2026-09-l.pdf) | LR008 Schedule BA collateral-loan source changes and AVR references | Classification/source crosswalk open |
| RBC Preamble, adopted June 18, 2026 | Purpose and limits of RBC use | Filing-equivalence label remains withheld |

The register assigns [2025-16-L MOD collateral-loan changes](https://content.naic.org/sites/default/files/inline-files/2025-16-l.pdf) to **2027**, not 2026. They are excluded from this 2026 bond ruleset. A [separate 2027 collateral-loan engine and comparison](naic-2027-collateral.md) was added in Phases 1–2 on October 18, 2026. Investment now shows each collateral loan's 2026 6.8% baseline alongside its 2027 charge, with separate totals. Insurer integration remains open. The 2026-10-CA source update applies to Health/P&C and is outside this Life/Fraternal scope. Reinsurance-recapture and C3-alignment exposures are not treated as adopted 2026 rules.

## Selected formula checks

### LR002

Source: 2026-12-IRE MOD, PDF pages 5–8. Inputs are the prescribed issuer count, line 23 RBC buckets and line 22 RBC. The non-CLO count includes unique CLO issuers; agency/exempt exclusions and look-through must be established before entry. Tiers use 2.40 for the first 50, 1.53 for the next 50, 0.85 for the next 400, and 0.82 thereafter. The weighted average is rounded to three decimals. Blank/zero count uses 2.400. CLO PAF is 1.000. Line 26 rounds the combined adjusted amount to whole dollars; line 27 adds line 22. Eligibility, hedging, reinsurance and tax inputs are not derived here.

Thin NAIC 6 remains blocked: the narrative threshold includes 2.C and worse, while the surcharge row's listed AVR sources omit A14. The consolidated instructions or an authoritative clarification must resolve that conflict.

### LR031 and LR033

Source: 2026-05-CA, PDF pages 40–41. The adopted LR031 shows the same covariance, operational-risk floor and doubled primary-security-shortfall mechanics as the existing historical engine. Checks cover lines 69, 70, 72, 73, 74 and 75. LR033 checks reconstruct lines 10, 11.2, 11.4 and 13 from supplied inputs. Capital-note credit is capped; the separate reinsurance RBC shortfall reduces TAC. Company/subsidiary AVR eligibility and ownership adjustments must be supported before entry. These arithmetic checks retain precision; consolidated rounding conventions remain open.

### Longevity crosswalk

2026-07-L requires zero in LR025-A line 6's longevity-reinsurance capital field for 2026. Line 7 then feeds the relevant LR030/LR031 longevity references. It does not justify zeroing all longevity risk. Upstream C2 mortality/longevity aggregation remains externally supplied.

## Full filing coverage and closure requirements

| Filing area | Present coverage | Required to close |
|---|---|---|
| LR001, classification and annual-statement source population | Manual evidence only | Final 2026 source map, insurer facts and completeness controls |
| LR002–LR018 asset and off-balance-sheet schedules | Eligible bond factors and selected LR002 arithmetic | All asset classes, concentration, hedging, reinsurance and source-line reconciliations |
| LR019–LR029 insurance/business risks | Supplied post-tax summary components | Product-level inputs, longevity, A&H changes, GOES outputs and certifications |
| LR030 prescribed tax effects | Externally supplied | Asset/component-specific tax and portfolio interactions, with final 2026 references |
| LR031 aggregation | Selected staged arithmetic checks | Independent case output and final line/rounding agreement |
| LR032–LR033 capital | Selected TAC arithmetic using supplied eligible inputs | Capital-note eligibility, subsidiary/AVR support, final conventions and independent output |
| LR034–LR035 action/trend outputs | Not implemented | Complete rules, multi-year inputs and boundary tests |
| LR036–LR049 reinsurance, affiliates, sensitivities and supporting schedules | Selected supplied shortfall/offset inputs only | Complete line-level source inventory and applicable schedules |

Final close-out requires the consolidated 2026 instructions/blanks, versioned NAIC or approved-vendor output, and matching insurer source inputs. Reconcile representative cases covering affiliates, asset concentration, thin tranches, reinsurance shortfalls, negative surplus, capital-note caps and C3/longevity exposure. Define tolerances from source precision and actual filing rounding; never increase a tolerance merely to force agreement. Synthetic fixtures do not satisfy this gate.

## Verification

`tests/naic-filing.test.cjs` tests tier boundaries, rounding, TAC signs, note caps, shortfall routing, covariance, missing inputs, unit conversion, tolerances and offsetting errors. Even all 12 selected checks within tolerance leave `filingEquivalent` false. The existing regression suites remain required. No actual insurer filing or authoritative 2026 output has been supplied or reconciled.