Section 6451 - DefinitionsAs used in this chapter, unless the context otherwise indicates, the following terms have the following meanings. [1993, c. 634, Pt. A, §1(NEW).]
1.Adjusted risk-based capital report. "Adjusted risk-based capital report" means a risk-based capital report that has been adjusted by the superintendent in accordance with section 6452, subsection 3. [1993, c. 634, Pt. A, §1(NEW).]
2.Corrective order. "Corrective order" means an order issued by the superintendent specifying corrective actions that the superintendent has determined are required. [1993, c. 634, Pt. A, §1(NEW).]
3.Domestic insurer. "Domestic insurer" means any insurance company domiciled in this State. [1997, c. 81, §1(AMD).]
4.Foreign insurer. "Foreign insurer" means any insurance company that is authorized to do business in this State under section 404 but is not domiciled in this State. [1997, c. 81, §1(AMD).]
4-A.Life or health insurer. "Life or health insurer" means any insurance company described in section 409, subsection 3 and authorized to do business in this State under section 410, or a licensed property and casualty insurer writing only accident and health insurance. [1997, c. 81, §2(NEW).]
5.NAIC.[2021, c. 521, §28(RP).]
6.Negative trend. "Negative trend" means:A. 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; and [2013, c. 238, Pt. D, §1(NEW).]B. With respect to a property and casualty insurer, a trend that meets the triggering criteria, as determined in accordance with the trend test calculation included in the risk-based capital instructions. [2013, c. 238, Pt. D, §1(NEW).] [2013, c. 238, Pt. D, §1(RPR).]
6-A.Property and casualty insurer. "Property and casualty insurer" means any insurance company authorized to do business in this State under section 410 except a life or health insurer or single line mortgage guaranty insurer, financial guaranty insurer or title insurer. [1997, c. 81, §4(NEW).]
7.Risk-based capital instructions. "Risk-based capital instructions" means the risk-based capital instructions adopted by the NAIC, as such risk-based capital instructions may be amended by the NAIC from time to time in accordance with the procedures adopted by the NAIC. [1993, c. 634, Pt. A, §1(NEW).]
8.Risk-based capital level. "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: 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; [1993, c. 634, Pt. A, §1(NEW).]B. "Regulatory action level risk-based capital" means the product of 1.5 and its authorized control level risk-based capital; [1993, c. 634, Pt. A, §1(NEW).]C. "Authorized control level risk-based capital" means the number determined under the risk-based capital formula in accordance with the risk-based capital instructions; and [1993, c. 634, Pt. A, §1(NEW).]D. "Mandatory control level risk-based capital" means the product of .70 and the authorized control level risk-based capital. [1993, c. 634, Pt. A, §1(NEW).] [1993, c. 634, Pt. A, §1(NEW).]
9.Risk-based capital plan. "Risk-based capital plan" means a comprehensive financial plan containing the elements specified in section 6453, subsection 2. If the superintendent rejects the risk-based capital plan and it is revised by the insurer, with or without the superintendent's recommendation, the plan is called the revised risk-based capital plan. [1993, c. 634, Pt. A, §1(NEW).]
10.Risk-based capital report. "Risk-based capital report" means the report required in section 6452. [1993, c. 634, Pt. A, §1(NEW).]
11.Total adjusted capital. "Total adjusted capital" means the sum of:A. An insurer's statutory capital and surplus; and [1993, c. 634, Pt. A, §1(NEW).]B. Such other items, if any, as the risk-based capital instructions provide. [1993, c. 634, Pt. A, §1(NEW).] [1993, c. 634, Pt. A, §1(NEW).]
Amended by 2022, c. 521,§ 28, eff. 3/29/2022.Amended by 2013, c. 238,§ D-1, eff. 10/9/2013.1993, c. 634, §A1 (NEW) . 1997, c. 81, §§1-4 (AMD) .