2017 South Carolina Code of Laws
Title 38 - Insurance
CHAPTER 9 - CAPITAL, SURPLUS, RESERVES, AND OTHER FINANCIAL MATTERS
Section 38-9-310. Definitions.
In this article, unless the context requires otherwise:
(1) "Adjusted RBC Report" means a risk based capital report which has been adjusted by the director in accordance with Section 38-9-320(F).
(2) "Capital and surplus" or "capital" except when used in the term "risk-based capital" or "adjusted capital", means net worth of a health maintenance organization as defined in Section 38-33-100 and, for all other licensees, means surplus to policyholders as defined in Section 38-1-20.
(3) "Corrective order" means an order issued by the director specifying corrective actions which the director has determined are required.
(4) "Domestic health organization" means any health organization domiciled in this State.
(5) "Domestic insurer" means an insurer domiciled in this State.
(6) "Domestic licensee" means and includes a domestic insurer and a domestic health organization.
(7) "Foreign health organization" means any health organization not domiciled in this State which is licensed in this State.
(8) "Foreign insurer" means an insurer which is licensed to transact business within this State, but which is not domiciled in this State.
(9) "Foreign licensee" means and includes a foreign insurer and a foreign health organization.
(10) "Health organization" means an insurer which is required to use the NAIC's Annual Statement Blank-Health pursuant to the NAIC Annual Statement Instructions-Health and to file it as prescribed by Section 38-13-80 or a health maintenance organization, as defined in Section 38-33-20, which is required to use the NAIC's Annual Statement Blank-Health pursuant to the NAIC Annual Statement Instructions-Health and to file it as prescribed by Section 38-33-90.
(11) "Licensee" means and includes a life and health insurer, a property and casualty insurer, and a health organization.
(12) "Life and health insurer" means an insurer licensed to transact life and health insurance in this State and any licensed property and casualty insurer writing only accident and health insurance.
(13) "NAIC" means the National Association of Insurance Commissioners.
(14) "Negative trend" means a negative trend over a period of time, as determined in accordance with the Trend Test Calculation included within the NAIC RBC Instructions.
(15) "Property and casualty insurer" means an insurer licensed to transact property and casualty insurance in this State. A "property and casualty insurer" does not include monoline mortgage guaranty insurers, financial guaranty insurers, or title insurers.
(16) "RBC" means risk-based capital.
(17) "RBC Instructions" means the risk-based capital report including RBC Instructions adopted and amended by the NAIC.
(18) "RBC Level" means a licensee's Company Action Level RBC, Regulatory Action Level RBC, Authorized Control Level RBC, or Mandatory Control Level RBC:
(a) "Company Action Level RBC" means the product of 2.0 and its Authorized Control Level RBC;
(b) "Regulatory Action Level RBC" means the Product of 1.5 and its Authorized Control Level RBC;
(c) "Authorized Control Level RBC" means the number determined by the RBC formula in accordance with the RBC Instructions; and
(d) "Mandatory Control Level RBC" means the product of .70 and the Authorized Control Level RBC.
(19) "RBC Plan" means a comprehensive financial plan filed by a licensee containing the elements specified within Section 38-9-330(B). If the director rejects the RBC Plan and it is revised by the licensee, with or without the director's recommendation, then that plan must be called the "Revised RBC Plan".
(20) "RBC Report" means the report required by Section 38-9-320.
(21) "Total Adjusted Capital" means the sum of a licensee's statutory capital and surplus and any other items provided in the RBC Instructions.
HISTORY: 1996 Act No. 254, Section 2; 2014 Act No. 164 (S.908), Section 1, eff January 1, 2015.
Effect of Amendment
2014 Act No. 164, Section 1, rewrote the section, adding definitions for: "Capital and surplus" or "capital", "Domestic health organization", "Domestic licensee", "Foreign health organization", "Foreign licensee", "Health organization", "Licensee", "Negative trend", and "RBC".
