§ 27-4.6-1 - Definitions. - Rhode Island Statutes

SECTION 27-4.6-1

   § 27-4.6-1  Definitions. – As used in this chapter:

   (1) "Adjusted RBC report" means an RBC report adjusted by thecommissioner in accordance with § 27-4.6-2(e).

   (2) "Corrective order" means an order issued by thecommissioner specifying corrective actions that the commissioner has determinedare required.

   (3) "Domestic insurer" means any insurance company domiciledin this state.

   (4) "Foreign insurer" means any insurance company licensed todo business in this state under chapter 2 of this title but is not domiciled inthis state.

   (5) "Life and/or health insurer" means any insurance companylicensed under chapters 1 or 2 of this title and: (i) authorized to transactthe business of life insurance or annuities as defined in chapter 4 of thistitle, or (ii) authorized to write policies of accident and sickness as definedin § 27-18-1, or (iii) a licensed property and casualty insurer writingonly accident and health insurance.

   (6) "NAIC" means the National Association of InsuranceCommissioners.

   (7) "Negative trend" means, with respect to a life and/orhealth insurer, negative trend over a period of time, as determined inaccordance with the "trend test calculation" included in the RBC instructions.

   (8) "Property and casualty insurer" means all other insurancecompanies licensed under chapters 1 or 2 of this title but shall not includemono-line mortgage guaranty insurers, financial guaranty insurers and titleinsurers.

   (9) "RBC instructions" means the RBC report includingrisk-based capital instructions adopted by the NAIC, as the RBC instructionsmay be amended by the NAIC in accordance with the procedures adopted by theNAIC.

   (10) "RBC level" means an insurer's company action level RBC,regulatory action level RBC, authorized control level RBC, or mandatory controllevel RBC where:

   (i) "Company action level RBC" means, with respect to anyinsurer, the product of two (2.0) and its authorized control level RBC;

   (ii) "Regulatory action level RBC" means the product of oneand one-half (1.5) and its authorized control level RBC;

   (iii) "Authorized control level RBC" means the numberdetermined under the risk-based capital formula in accordance with the RBCinstructions;

   (iv) "Mandatory control level RBC" means the product ofseven-tenths (.70) and the authorized control level RBC.

   (11) "RBC plan" means a comprehensive financial plancontaining the elements specified in § 27-4.6-3(b). If the commissionerrejects the RBC plan, and it is revised by the insurer, with or without thecommissioner's recommendation, the plan shall be called the "revised RBC plan."

   (12) "RBC report" means the report required in §27-4.6-2.

   (13) "Total adjusted capital" means the sum of:

   (i) An insurer's statutory capital and surplus; and

   (ii) Those other items, if any, as the RBC instructions mayprovide.