Or. Admin. R. 836-011-0505

Current through Register Vol. 63, No. 8, August 1, 2024

Section 836-011-0505 - Definitions

As used in OAR 836-011-0500 to 836-011-05:

(1) "Adjusted RBC report" means an RBC report that has been adjusted by the Director in accordance with OAR 836-011-0510(4).

(2) "Corrective order" means an order issued by the Director specifying corrective actions that the Director has determined are required.

(3) "Domestic health care service contractor" means a health care service contractor domiciled in this state.

(4) "Foreign health care service contractor" means a health care service contractor that is authorized to transact business in this state as a health care service contractor but is not domiciled in this state.

(5) "NAIC" means the National Association of Insurance Commissioners.

(6) "RBC instructions" means the RBC report including risk-based capital instructions adopted by the NAIC, as the RBC instructions may be amended by the NAIC from time to time in accordance with the procedures adopted by the NAIC.

(7) "RBC level" means a health care service contractor's Company Action Level RBC, Regulatory Action Level RBC, Authorized Control Level RBC or Mandatory Control Level RBC, defined as follows:

(a) "Company Action Level RBC" means, with respect to any health care service contractor, the product of 2.0 and its Authorized Control Level RBC;

(b) "Regulatory Action Level RBC" means the product of 1.5 and its Authorized Control Level RBC;

(c) "Authorized Control Level RBC" means the number determined under the risk-based capital formula in accordance with the RBC Instructions;

(d) "Mandatory Control Level RBC" means the product of .70 and the Authorized Control Level RBC.

(8) "RBC plan" means a comprehensive financial plan containing the elements specified in OAR 836-011-0515(2). If the Director rejects the RBC plan and it is revised by the health care service contractor with or without the Director's recommendation, the plan shall be called the "revised RBC plan."

(9) "RBC report" means the report required in OAR 836-011-0510.

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

(a) A health care service contractor's statutory capital and surplus (i.e. net worth) as determined in accordance with the statutory accounting applicable to the annual financial statements required to be filed under ORS 731.574; and

(b) Such other items, if any, as the RBC instructions may provide.

Or. Admin. R. 836-011-0505

ID 22-2002, f. & cert. ef. 11-27-02

Stat. Auth.: ORS 731.244, ORS 750.045

Stats. Implemented: ORS 731.574, ORS 733.210, ORS 750.045