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 purposes
of this part unless the context otherwise requires:



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



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



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



"NAIC" means the National Association
of Insurance Commissioners.



"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.



"Property and casualty insurer" means
any 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 guaranty
insurers, and title insurers.



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



"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:



(1)  "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;



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



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



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



"Risk-based capital plan" means a
comprehensive financial plan containing the elements specified in section
431:3-403(b).  If the commissioner rejects the risk-based capital plan and it
is 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 the
report required in section 431:3-402.



"Total adjusted capital" means the
sum of:



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



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