Chapter 79: RISK-BASED CAPITAL STANDARDS HEADING: PL 1993, C. 634, PT. A, §1 (NEW)
§6451. Definitions
As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings. [1993, c. 634, Pt. A, §1 (NEW).]
1.Adjusted risk-based capital report. "Adjusted risk-based capital report" means a risk-based capital report that has been adjusted by the superintendent in accordance
with section 6452, subsection 3.
[
1993, c. 634, Pt. A, §1 (NEW)
.]
2.Corrective order. "Corrective order" means an order issued by the superintendent specifying corrective actions that the superintendent has
determined are required.
[
1993, c. 634, Pt. A, §1 (NEW)
.]
3.Domestic insurer. "Domestic insurer" means any insurance company domiciled in this State.
[
1997, c. 81, §1 (AMD)
.]
4.Foreign insurer. "Foreign insurer" means any insurance company that is authorized to do business in this State under section 404 but is not
domiciled in this State.
[
1997, c. 81, §1 (AMD)
.]
4-A.Life or health insurer. "Life or health insurer" means any insurance company described in section 409, subsection 3 and authorized to do business
in this State under section 410, or a licensed property and casualty insurer writing only accident and health insurance.
[
1997, c. 81, §2 (NEW)
.]
5.NAIC. "NAIC" means the National Association of Insurance Commissioners.
[
1993, c. 634, Pt. A, §1 (NEW)
.]
6.Negative trend. "Negative trend" means, with respect to a life or health insurer, a negative trend over a period of time, as determined
in accordance with the trend test calculation included in the risk-based capital instructions.
[
1997, c. 81, §3 (AMD)
.]
6-A.Property and casualty insurer. "Property and casualty insurer" means any insurance company authorized to do business in this State under section 410 except
a life or health insurer or single line mortgage guaranty insurer, financial guaranty insurer or title insurer.
[
1997, c. 81, §4 (NEW)
.]
7.Risk-based capital instructions. "Risk-based capital instructions" means the risk-based capital instructions adopted by the NAIC, as such risk-based capital
instructions may be amended by the NAIC from time to time in accordance with the procedures adopted by the NAIC.
[
1993, c. 634, Pt. A, §1 (NEW)
.]
8.Risk-based capital level. "Risk-based capital level" means an insurer's company action level risk-based capital, regulatory action level risk-based
capital, authorized control level risk-based capital or mandatory control level risk-based capital where:
A. "Company action level risk-based capital" means, with respect to any insurer, the product of 2.0 and its authorized control
level risk-based capital; [1993, c. 634, Pt. A, §1 (NEW).]
B. "Regulatory action level risk-based capital" means the product of 1.5 and its authorized control level risk-based capital; [1993, c. 634, Pt. A, §1 (NEW).]
C. "Authorized control level risk-based capital" means the number determined under the risk-based capital formula in accordance
with the risk-based capital instructions; and [1993, c. 634, Pt. A, §1 (NEW).]
D. "Mandatory control level risk-based capital" means the product of .70 and the authorized control level risk-based capital. [1993, c. 634, Pt. A, §1 (NEW).]
[
1993, c. 634, Pt. A, §1 (NEW)
.]
9.Risk-based capital plan. "Risk-based capital plan" means a comprehensive financial plan containing the elements specified in section 6453, subsection
2. If the superintendent rejects the risk-based capital plan and it is revised by the insurer, with or without the superintendent's
recommendation, the plan is called the revised risk-based capital plan.
[
1993, c. 634, Pt. A, §1 (NEW)
.]
10.Risk-based capital report. "Risk-based capital report" means the report required in section 6452.
[
1993, c. 634, Pt. A, §1 (NEW)
.]
11.Total adjusted capital. "Total adjusted capital" means the sum of:
A. An insurer's statutory capital and surplus; and [1993, c. 634, Pt. A, §1 (NEW).]
B. Such other items, if any, as the risk-based capital instructions provide. [1993, c. 634, Pt. A, §1 (NEW).]
[
1993, c. 634, Pt. A, §1 (NEW)
.]
SECTION HISTORY
1993, c. 634, §A1 (NEW).
1997, c. 81, §§1-4 (AMD).
Data for this page extracted on 11/09/2009 11:20:25.