PART IV. RISK-BASED CAPITAL FOR INSURERS

 

Note

 

  Part heading amended by L 1997, c 75, §2.

 

Cross References

 

  Civil relief for state military forces, see chapter 657D.

 

§431:3-401  Definitions.  For purposesof this part unless the context otherwise requires:

"Adjusted risk-based capital report"means a risk-based capital report which has been adjusted by the commissionerin accordance with section 431:3-402(e).

"Corrective order" means an orderissued by the commissioner specifying corrective actions which the commissionerhas determined are required.

"Life or accident and health or sicknessinsurer" means any insurer that is within the definition of section431:1-204 or 431:1-205 and is licensed under article 3, or a licensed propertyand casualty insurer writing only accident and health or sickness insurance.

"NAIC" means the National Associationof Insurance Commissioners.

"Negative trend" means, with respectto a life or health insurer, [a] negative trend over a period of time, asdetermined in accordance with the "trend test calculation" includedin the risk-based capital instructions.

"Property and casualty insurer" meansany insurer that is within the definition of section 431:1-206, 431:1-207,431:1-208, 431:1-209, 431:1-210, or 431:1-211 and is licensed under article 3,but shall not include monoline mortgage guaranty insurers, financial guarantyinsurers, and title insurers.

"Risk-based capital instructions"means the risk-based capital report including risk-based capital instructionsadopted by the National Association of Insurance Commissioners, as suchrisk-based capital instructions may be amended by the National Association ofInsurance Commissioners from time to time in accordance with the proceduresadopted by the National Association of Insurance Commissioners.

"Risk-based capital level" means aninsurer's company action level risk-based capital, regulatory action levelrisk-based capital, authorized control level risk-based capital, or mandatorycontrol level risk-based capital where:

(1)  "Company action level risk-basedcapital" means, with respect to any insurer, the product of 2.0 and itsauthorized control level risk-based capital;

(2)  "Regulatory action level risk-basedcapital" means, with respect to any insurer, the product of 1.5 and itsauthorized control level risk-based capital;

(3)  "Authorized control level risk-basedcapital" means, with respect to any insurer, the number determined underthe risk-based capital formula in accordance with the risk-based capital instructions;and

(4)  "Mandatory control level risk-basedcapital" means, with respect to any insurer, the product of 0.70 and theauthorized control level risk-based capital.

"Risk-based capital plan" means acomprehensive financial plan containing the elements specified in section431:3-403(b).  If the commissioner rejects the risk-based capital plan and itis revised by the insurer, with or without the commissioner's recommendation,the plan shall be called the "revised risk-based capital plan".

"Risk-based capital report" means thereport required in section 431:3-402.

"Total adjusted capital" means thesum of:

(1)  An insurer's statutory capital and surplus asdetermined in accordance with the statutory accounting applicable to the annualfinancial statements required to be filed under section 431:3-301; and

(2)  Any other items that the risk-based capitalinstructions may provide. [L 1994, c 190, pt of §1; am L 1995, c 61, §2 assuperseded by c 232, §4; am L 1997, c 75, §3; am L 1999, c 128, §2; am L 2003,c 212, §25]