41-5401. DEFINITIONS. As used in this chapter, these terms shall have the following meanings:
(1) "Adjusted RBC report" means an RBC report which has been adjusted by the director in accordance with section 41-5402(5), Idaho Code.
(2) "Corrective order" means an order issued by the director specifying corrective actions which the director has determined are required.
(3) "Domestic insurer" means any insurer domiciled in this state.
(4) "Foreign insurer" means any insurer not domiciled in this state.
(5) "Health organization" means any hospital service corporation or professional service corporation licensed under chapter 34, title 41, Idaho Code.
(6) "Insurer" means any insurance company authorized to transact insurance business in this state and includes a fraternal benefit society and a health organization unless the context otherwise requires.
(7) "Life and/or health insurer" means any insurer licensed under chapter 3, title 41, Idaho Code, to transact life, disability, accident and/or health insurance and includes any managed care organization within the scope of section 41-3921(1), Idaho Code, or a licensed property and casualty insurer writing only disability or accident and health insurance.
(8) "NAIC" means the national association of insurance commissioners.
(9) "Negative trend" means, with respect to a life and/or health insurer or a fraternal benefit society, a negative trend over a period of time, as determined in accordance with the "Trend Test Calculation" included in the life or fraternal RBC instructions.
(10) "Property and casualty insurer" means any insurer licensed under chapter 3, title 41, Idaho Code, to transact property and casualty insurance, but shall not include monoline mortgage guaranty insurers, financial guaranty insurers, title insurers, farm and county mutuals and domestic reciprocal insurers with fewer than seven (7) subscribers which insure only worker’s compensation risk in this state and which only issue fully assessable policies.
(11) "RBC" means risk-based capital.
(12) "RBC instructions" means the RBC report, including risk-based capital instructions adopted by the NAIC, as such RBC instructions may be amended by the NAIC from time to time in accordance with the procedures adopted by the NAIC.
(13) "RBC level" means an insurer’s company action level RBC, regulatory action level RBC, authorized control level RBC, or mandatory control level RBC where:
(a) "Authorized control level RBC" means the number determined under the risk-based capital formula in accordance with the RBC instructions;
(b) "Company action level RBC" means, with respect to any insurer, the product of 2.0 and its authorized control level RBC;
(c) "Mandatory control level RBC" means the product of .70 and the authorized control level RBC;
(d) "Regulatory action level RBC" means the product of 1.5 and its authorized control level RBC.
(14) "RBC plan" means a comprehensive financial plan containing the elements specified in section 41-5403(2), Idaho Code. If the director rejects the RBC plan and it is revised by the insurer, with or without the director’s recommendation, the plan shall be called the "revised RBC plan."
(15) "RBC report" means the report required in section 41-5402, Idaho Code.
(16) "Total adjusted capital" means the sum of:
(a) An insurer’s statutory capital and surplus as determined in accordance with the statutory accounting applicable to the annual financial statements required to be filed under section 41-335, 41-3225 or 41-3425, Idaho Code; and
(b) Such other items, if any, as the RBC instructions may provide.
History:
[41-5401, added 1996, ch. 96, sec. 1, p. 283; am. 2004, ch. 255, sec. 1, p. 726; am. 2014, ch. 319, sec. 1, p. 785.]