Part Definitions

  1. Law
  2. Tennessee Code
  3. Insurance
  4. Risk-Based Capital
  5. Risk-Based Capital for Insurers Act
  6. Part Definitions

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As used in this part, unless the context otherwise requires:

  1. “Adjusted RBC Report” means an RBC report that has been adjusted by the commissioner in accordance with § 56-46-103(e);
  2. “Corrective order” means an order issued by the commissioner specifying corrective actions that the commissioner has determined are required;
  3. “Domestic insurer” means any insurance company domiciled in Tennessee;
  4. “Foreign insurer” means any insurance company that is licensed to do business in Tennessee under this title but is not domiciled in Tennessee;
  5. “Life and/or health insurer” means any insurance company licensed for those lines in Tennessee, or a property and casualty insurer writing only accident and health insurance;
  6. “NAIC” means the National Association of Insurance Commissioners;
  7. “Negative trend” means, with respect to a life and/or health insurer, negative trend over a period of time, as determined in accordance with the “Trend Test Calculation” included in the RBC Instructions;
  8. “Property and casualty insurer” means any insurance company licensed in those lines in Tennessee, but does not include monoline mortgage guaranty insurers, financial guaranty insurers and title insurers;
  9. “RBC Instructions” means the RBC Report including risk-based capital instructions adopted by the NAIC, as the RBC Instructions may be amended by the NAIC from time to time in accordance with the procedures adopted by the NAIC;
  10. “RBC Level” means an insurer's Company Action Level RBC, Regulatory Action Level RBC, Authorized Control Level RBC, or Mandatory Control Level RBC where:
    1. “Authorized Control Level RBC” means the number determined under the risk-based capital formula in accordance with the RBC Instructions;
    2. “Company Action Level RBC” means, with respect to any insurer, the product of 2.0 and its Authorized Control Level RBC;
    3. “Mandatory Control Level RBC” means the product of 0.70 and the authorized Control Level RBC; and
    4. “Regulatory Action Level RBC” means the product of 1.5 and its authorized Control Level RBC;
  11. “RBC Plan” means a comprehensive financial plan containing the elements specified in § 56-46-104(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”;
  12. “RBC Report” means the report required in § 56-46-103; and
  13. “Total adjusted capital” means 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 required to be filed pursuant to § 56-1-501; and
    2. The other items, if any, that the RBC Instructions may provide.


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