§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:





A. 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; and [2013, c. 238, Pt. D, §1 (NEW).]










B. With respect to a property and casualty insurer, a trend that meets the triggering
criteria, as determined in accordance with the trend test calculation included in
the risk-based capital instructions. [2013, c. 238, Pt. D, §1 (NEW).]







[
2013, c. 238, Pt. D, §1 (RPR)
.]








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, Pt. A, §1 (NEW).
1997, c. 81, §§1-4 (AMD).
2013, c. 238, Pt. D, §1 (AMD).