3 Colo. Code Regs. § 702-3-1-11-4

Current through Register Vol. 47, No. 24, December 25, 2024

Section 3 CCR 702-3-1-11-4 - Definitions

As used in this Regulation, these terms shall have the following meanings:

A. "Adjusted RBC Report" shall mean, for the purposes of this regulation, an RBC report which has been adjusted by the Commissioner in accordance with Section 5.E.

B. "Corrective Order" shall mean, for the purposes of this regulation, an order issued by the Commissioner pursuant to § 10-3-404, C.R.S., specifying corrective actions which the Commissioner has determined are required.

C. "Domestic insurer" shall mean, for the purposes of this regulation, any insurance company or fraternal benefit society domiciled in this State.

D. "Foreign insurer" shall mean, for the purposes of this regulation, any insurance company or fraternal benefit society that is licensed to do business in this State, but is not domiciled in this State.

E. "Life and/or health insurer" shall mean, for the purposes of this regulation, any insurance company licensed as a life insurer, health insurer, fraternal benefit society, or a licensed property and casualty insurer writing only accident and health insurance.

F. "NAIC" shall mean, for the purposes of this regulation, the National Association of Insurance Commissioners.

G. "Negative trend" shall mean, for the purposes of this regulation, with respect to a life and/or health insurer, a negative trend over a period of time, as determined in accordance with the "Trend Test Calculation" included in the Life RBC Instructions.

H. "Property and casualty insurer" shall mean, for the purposes of this regulation, any licensed property and casualty insurance company, including a group captive insurance company organized pursuant to the provisions of Article 6 of Title 10, C.R.S., but shall not include monoline mortgage guaranty insurers, financial guaranty insurers, title insurers and county mutual protective associations organized on an assessment basis pursuant to § 10-12-101(2), C.R.S.

I. "RBC instructions" shall mean, for the purposes of this regulation, the RBC Report, including risk-based capital instructions and procedures adopted by the NAIC, as part of the required annual filing on the NAIC convention blank.

J. "RBC Level" shall mean, for the purposes of this regulation, an insurer's Company Action Level RBC, Regulatory Action Level RBC, Authorized Control Level RBC, or Mandatory Control Level RBC, where:

1. "Company Action Level RBC" means, with respect to any insurer, the product of 2.0 and its Authorized Control Level RBC;

2. "Regulatory Action Level RBC" means the product of 1.5 and its Authorized Control Level RBC;

3. "Authorized Control Level RBC" means the number determined under the risk based capital formula in accordance with the RBC Instructions;

4. "Mandatory Control Level RBC" means the product of .70 and the Authorized Control Level RBC.

K. "RBC Plan" shall mean, for the purposes of this regulation, a comprehensive financial plan containing the elements specified in Section 6.B. If the Commissioner rejects the RBC Plan, and it is revised by the insurer, with or without the Commissioner's recommendation, the plan shall be called the "Revised RBC Plan."

L. "RBC Report" shall mean, for the purposes of this regulation, the report required in Section 5. of this Regulation.

M. "Total Adjusted Capital" shall mean, for the purposes of this regulation, 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; and

2. Such other items, if any, as the RBC Instructions may provide.

3 CCR 702-3-1-11-4

37 CR 20, October 25,2014, effective 11/15/2014

37 CR 20, October 25,2014, effective 1/1/2015

37 CR 23, December 10, 2014, effective 1/1/2015

38 CR 17, September 10, 2015, effective 10/1/2015

39 CR 05, March 10, 2016, effective 4/1/2016

39 CR 14, July 25, 2016, effective 8/15/2016

39 CR 23, December 10, 2016, effective 1/1/2017

40 CR 03, February 10, 2017, effective 3/15/2017

40 CR 05, March 10, 2017, effective 4/1/2017

40 CR 13, July 10, 2017, effective 8/1/2017

40 CR 17, September 10, 2017, effective 11/1/2017

43 CR 06, March 25, 2020, effective 4/15/2020

44 CR 03, February 10, 2021, effective 3/15/2021

44 CR 23, December 10, 2021, effective 1/1/2022

46 CR 03, February 10, 2023, effective 3/2/2023