Definitions

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§6451. Definitions

As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.   [PL 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.  

[PL 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.  

[PL 1993, c. 634, Pt. A, §1 (NEW).]

3.  Domestic insurer.  "Domestic insurer" means any insurance company domiciled in this State.  

[PL 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.  

[PL 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.  

[PL 1997, c. 81, §2 (NEW).]

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

[PL 1993, c. 634, Pt. A, §1 (NEW).]

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   [PL 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.   [PL 2013, c. 238, Pt. D, §1 (NEW).]

[PL 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.  

[PL 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.  

[PL 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;   [PL 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;   [PL 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   [PL 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.   [PL 1993, c. 634, Pt. A, §1 (NEW).]

[PL 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.  

[PL 1993, c. 634, Pt. A, §1 (NEW).]

10.  Risk-based capital report.  "Risk-based capital report" means the report required in section 6452.  

[PL 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   [PL 1993, c. 634, Pt. A, §1 (NEW).]

B. Such other items, if any, as the risk-based capital instructions provide.   [PL 1993, c. 634, Pt. A, §1 (NEW).]

[PL 1993, c. 634, Pt. A, §1 (NEW).]

SECTION HISTORY

PL 1993, c. 634, Pt. A, §1 (NEW). PL 1997, c. 81, §§1-4 (AMD). PL 2013, c. 238, Pt. D, §1 (AMD).


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