2010 Arkansas Code
Title 23 - Public Utilities and Regulated Industries
Subtitle 3 - Insurance
Chapter 63 - Insurance Companies Generally
Subchapter 13 - Risk-Based Capital
§ 23-63-1302 - Definitions.

23-63-1302. Definitions.

As used in this subchapter, these terms shall have the following meanings:

A. "Adjusted RBC Report" means an RBC report which has been adjusted by the Insurance Commissioner in accordance with 23-63-1303(E).

B. "Corrective order" means an order issued by the commissioner specifying corrective actions which the commissioner has determined are required.

C. "Domestic insurer" means any insurance company domiciled in this state.

D. "Foreign insurer" means any insurance company which is authorized to do business in this state pursuant to 23-63-201 et seq. but is not domiciled in this state.

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

F. "Life and/or accident and health insurer" means any insurance company authorized to transact a life and/or accident and health insurance business pursuant to 23-63-201 et seq.

G. "Property or casualty insurer" means any insurance company authorized to transact property or casualty insurance business pursuant to 23-63-201 et seq., including farmers' mutual aid associations, and fraternal benefit societies, but shall not include monoline mortgage guaranty insurers, financial guaranty insurers, and title insurers.

H. "Negative trend" means, with respect to a life and/or accident and health insurer, negative trend over a period of time, as determined in accordance with the "Trend Test Calculation" included in the RBC Instructions.

I. "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.

J. "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) "Company Action Level RBC" means, with respect to any insurer, the product of 2.0 and its Authorized Control Level RBC;

(2) "Regulatory Action Level RBC" means the product of 1.5 and its Authorized Control Level RBC;

(3) "Authorized Control Level RBC" means the number determined under the risk-based capital formula in accordance with the RBC Instructions;

(4) "Mandatory Control Level RBC" means the product of .70 and the Authorized Control Level RBC.

K. "RBC Plan" means a comprehensive financial plan containing the elements specified 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 shall be called the "Revised RBC Plan".

L. "RBC Report" means the report required in 23-63-1303.

M. "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 under 23-63-216; and

(2) Such other items, if any, as the RBC Instructions may provide.

N. "Commissioner" means the Insurance Commissioner for the State of Arkansas unless the context requires otherwise.

O. "RBC" means risk-based capital.