State Codes and Statutes

Statutes > Vermont > Title-08 > Chapter-159 > 8301

§ 8301. Definitions

As used in this chapter:

(1) "Adjusted risk based capital report" means a risk based capital report which has been adjusted by the commissioner in accordance with subsection 8302(d) of this title.

(2) "Authorized control level risk based capital" means the number determined using the risk based capital formula in accordance with the risk based capital instructions. The formula shall take into account asset risk, insurance risk, interest rate risk and other business risk of the insurer and may adjust for the covariance between them.

(3) "Commissioner" means the commissioner of the department of banking, insurance, securities, and health care administration.

(4) "Corrective order" means an order issued by the commissioner specifying corrective actions which the commissioner has determined are required under this chapter.

(5) "Domestic insurer" means any life and/or health insurance company organized in this state under subchapter 1 of chapter 101 of this title.

(6) "Final adjusted risk based capital report" means an adjusted risk based capital report that has not been appealed in accordance with section 8307 of this title or has been appealed and resulted in a determination adverse to the insurer.

(7) "Foreign insurer" means any life or health insurance company which is licensed to do business in this state under section 3361 of this title.

(8) "Margin" means the amount of total adjusted capital in excess of authorized control level risk based capital.

(9) "Marginal difference" means the amount of total adjusted capital in excess of authorized control level risk based capital for a specified period of time.

(10) "Negative trend" means a decreasing marginal difference of total adjusted capital over authorized control level risk based capital over a period of time as determined in accordance with the trend test calculation incorporated in the risk based capital instructions.

(11) "Risk based capital instructions" means the risk based capital report form and the related instructions adopted by the National Association of Insurance Commissioners and approved by the commissioner.

(12) "Risk based capital level" means one of the following four levels: 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.

(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.

(B) "Regulatory action level risk based capital" means the product of 1.5 and its authorized control level risk based capital.

(C) "Mandatory control level risk based capital" means the product of 0.70 and its authorized control level risk based capital.

(13) "Risk based capital plan" means a comprehensive financial plan containing the elements specified in subsection 8303(b) of this title. 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."

(14) "Risk based capital report" means the report required in section 8302 of this title.

(15) "Total adjusted capital" means the sum of:

(A) the insurer's statutory capital and surplus reported in the insurer's annual statement under section 3561 of this title; and

(B) such other items, if any, as the risk based capital instructions may provide. (Added 1993, No. 235 (Adj. Sess.), § 8, eff. June 21, 1994; amended 1995, No. 180 (Adj. Sess.), § 38(a).)

State Codes and Statutes

Statutes > Vermont > Title-08 > Chapter-159 > 8301

§ 8301. Definitions

As used in this chapter:

(1) "Adjusted risk based capital report" means a risk based capital report which has been adjusted by the commissioner in accordance with subsection 8302(d) of this title.

(2) "Authorized control level risk based capital" means the number determined using the risk based capital formula in accordance with the risk based capital instructions. The formula shall take into account asset risk, insurance risk, interest rate risk and other business risk of the insurer and may adjust for the covariance between them.

(3) "Commissioner" means the commissioner of the department of banking, insurance, securities, and health care administration.

(4) "Corrective order" means an order issued by the commissioner specifying corrective actions which the commissioner has determined are required under this chapter.

(5) "Domestic insurer" means any life and/or health insurance company organized in this state under subchapter 1 of chapter 101 of this title.

(6) "Final adjusted risk based capital report" means an adjusted risk based capital report that has not been appealed in accordance with section 8307 of this title or has been appealed and resulted in a determination adverse to the insurer.

(7) "Foreign insurer" means any life or health insurance company which is licensed to do business in this state under section 3361 of this title.

(8) "Margin" means the amount of total adjusted capital in excess of authorized control level risk based capital.

(9) "Marginal difference" means the amount of total adjusted capital in excess of authorized control level risk based capital for a specified period of time.

(10) "Negative trend" means a decreasing marginal difference of total adjusted capital over authorized control level risk based capital over a period of time as determined in accordance with the trend test calculation incorporated in the risk based capital instructions.

(11) "Risk based capital instructions" means the risk based capital report form and the related instructions adopted by the National Association of Insurance Commissioners and approved by the commissioner.

(12) "Risk based capital level" means one of the following four levels: 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.

(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.

(B) "Regulatory action level risk based capital" means the product of 1.5 and its authorized control level risk based capital.

(C) "Mandatory control level risk based capital" means the product of 0.70 and its authorized control level risk based capital.

(13) "Risk based capital plan" means a comprehensive financial plan containing the elements specified in subsection 8303(b) of this title. 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."

(14) "Risk based capital report" means the report required in section 8302 of this title.

(15) "Total adjusted capital" means the sum of:

(A) the insurer's statutory capital and surplus reported in the insurer's annual statement under section 3561 of this title; and

(B) such other items, if any, as the risk based capital instructions may provide. (Added 1993, No. 235 (Adj. Sess.), § 8, eff. June 21, 1994; amended 1995, No. 180 (Adj. Sess.), § 38(a).)


State Codes and Statutes

State Codes and Statutes

Statutes > Vermont > Title-08 > Chapter-159 > 8301

§ 8301. Definitions

As used in this chapter:

(1) "Adjusted risk based capital report" means a risk based capital report which has been adjusted by the commissioner in accordance with subsection 8302(d) of this title.

(2) "Authorized control level risk based capital" means the number determined using the risk based capital formula in accordance with the risk based capital instructions. The formula shall take into account asset risk, insurance risk, interest rate risk and other business risk of the insurer and may adjust for the covariance between them.

(3) "Commissioner" means the commissioner of the department of banking, insurance, securities, and health care administration.

(4) "Corrective order" means an order issued by the commissioner specifying corrective actions which the commissioner has determined are required under this chapter.

(5) "Domestic insurer" means any life and/or health insurance company organized in this state under subchapter 1 of chapter 101 of this title.

(6) "Final adjusted risk based capital report" means an adjusted risk based capital report that has not been appealed in accordance with section 8307 of this title or has been appealed and resulted in a determination adverse to the insurer.

(7) "Foreign insurer" means any life or health insurance company which is licensed to do business in this state under section 3361 of this title.

(8) "Margin" means the amount of total adjusted capital in excess of authorized control level risk based capital.

(9) "Marginal difference" means the amount of total adjusted capital in excess of authorized control level risk based capital for a specified period of time.

(10) "Negative trend" means a decreasing marginal difference of total adjusted capital over authorized control level risk based capital over a period of time as determined in accordance with the trend test calculation incorporated in the risk based capital instructions.

(11) "Risk based capital instructions" means the risk based capital report form and the related instructions adopted by the National Association of Insurance Commissioners and approved by the commissioner.

(12) "Risk based capital level" means one of the following four levels: 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.

(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.

(B) "Regulatory action level risk based capital" means the product of 1.5 and its authorized control level risk based capital.

(C) "Mandatory control level risk based capital" means the product of 0.70 and its authorized control level risk based capital.

(13) "Risk based capital plan" means a comprehensive financial plan containing the elements specified in subsection 8303(b) of this title. 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."

(14) "Risk based capital report" means the report required in section 8302 of this title.

(15) "Total adjusted capital" means the sum of:

(A) the insurer's statutory capital and surplus reported in the insurer's annual statement under section 3561 of this title; and

(B) such other items, if any, as the risk based capital instructions may provide. (Added 1993, No. 235 (Adj. Sess.), § 8, eff. June 21, 1994; amended 1995, No. 180 (Adj. Sess.), § 38(a).)

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