Definitions

  1. Law
  2. Arkansas Code
  3. Public Utilities and Regulated Industries
  4. Insurance
  5. Insurance Companies Generally
  6. Risk-Based Capital Act
  7. Definitions

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As used in this subchapter:

  1. (1) “Adjusted RBC report” means a risk-based capital report that has been adjusted by the Insurance Commissioner under § 23-63-1303(e);

  2. (2) “Corrective order” means an order issued by the commissioner specifying corrective actions that the commissioner has determined are needed;

  3. (3) “Domestic insurer” means an insurance company domiciled in this state;

  4. (4) “Foreign insurer” means an insurance company that may do business in this state under § 23-63-201 et seq. but is not domiciled in this state;

  5. (5) “Fraternal benefit society” means an insurance company or society organized and licensed under Arkansas Code Title 23, Chapter 74;

  6. (6) “Life or accident and health insurer” means:

    1. (A) An insurance company authorized to transact a life or accident and health insurance business under § 23-63-201 et seq.; or

    2. (B) An authorized property and casualty insurer writing only accident and health insurance;

  7. (7) “NAIC” means the National Association of Insurance Commissioners;

  8. (8) “Negative trend” means, with respect to a life or accident and health insurer or a fraternal benefit society, a negative trend over a period, as determined according to the trend test calculation included in the RBC instructions for a life or accident and health insurer or RBC instructions for a fraternal benefit society;

  9. (9)

    1. (A) “Property or casualty insurer” means an insurance company authorized to transact property or casualty insurance business under § 23-63-201 et seq., including farmers' mutual aid associations and fraternal benefit societies.

    2. (B) “Property or casualty insurer” does not include:

      1. (i) Monoline mortgage guaranty insurers;

      2. (ii) Financial guaranty insurers; or

      3. (iii) Title insurers;

  10. (10) “RBC” means risk-based capital;

  11. (11) “RBC instructions” means the RBC report including risk-based capital instructions adopted by the NAIC, as amended by the NAIC;

  12. (12) “RBC level” means an insurer's company action level RBC, regulatory action level RBC, authorized control level RBC, or mandatory control level RBC when:

    1. (A) “Authorized control level RBC” means the number determined under the risk-based capital formula according to the RBC instructions;

    2. (B) “Company action level RBC” means, with respect to an insurer, the product of two (2) and its authorized control level RBC;

    3. (C) “Mandatory control level RBC” means the product of seven-tenths of one percent (0.7%) and the authorized control level RBC; and

    4. (D) “Regulatory action level RBC” means the product of one and five-tenths (1.5) and its authorized control level RBC;

  13. (13) “RBC plan” means a comprehensive financial plan containing the elements named in § 23-63-1304(b). If the commissioner rejects the RBC plan and it is revised by the insurer with or without the commissioner's recommendation, the plan is called the “revised RBC plan”;

  14. (14) “RBC report” means the report required under § 23-63-1303; and

  15. (15) “Total adjusted capital” means the sum of:

    1. (A) An insurer's statutory capital and surplus as determined according to the statutory accounting applicable to the annual financial statements required under § 23-63-216; and

    2. (B) Other items, if any, that the RBC instructions may provide.


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