33-56-1. Definitions.

As used in this chapter, the term:

‘‘Adjusted RBC report’’ means an RBC report which has been adjusted in accordance with subsection (e) of Code Section 33-56-2.#

‘‘Corrective order’’ means an order issued by the Commissioner specifying corrective actions which the Commissioner has determined are required.#

‘‘Domestic insurer’’ means an insurer as defined in paragraph (4) of Code Section 33-3-1.#

‘‘Foreign insurer’’ means any insurance company which is licensed to do business in this state under Chapter 3 of this title, but is not a domestic insurer.#

‘‘Health organization’’ means any health maintenance organization; limited health service organization; hospital, medical, or dental indemnity or service corporation; or other managed care organization licensed under this title; provided, however, that health organization does not include any life and health insurer or property and casualty insurer.#

‘‘Insurer’’ includes without limitation any health organization.#

‘‘Life and health insurer’’ means any insurance company licensed to write insurance as defined in Code Section 33-7-2 or 33-7-4 or a licensed property and casualty insurer writing only accident and health insurance.#

‘‘NAIC’’ means the National Association of Insurance Commissioners.#

‘‘Negative trend’’ means, with respect to a life and health insurer, a negative trend over a period of time, as determined in accordance with the trend test calculation included in the life RBC instructions.#

‘‘Property and casualty insurer’’ means any insurance company licensed to write insurance as defined in Code Section 33-7-3 or 33-7-6 but shall not include monoline mortgage guaranty insurers, financial guaranty insurers, and title insurers.#

‘‘RBC’’ means risk-based capital.#

‘‘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.#

‘‘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. (A)

   ‘‘Authorized control level RBC’’ means the number determined under the risk-based capital formula in accordance with the RBC instructions;#

2. (B)

   ‘‘Company action level RBC’’ means, with respect to any insurer, the product of 2.0 and its authorized control level RBC;#

3. (C)

   ‘‘Mandatory control level RBC’’ means the product of .70 and the authorized control level RBC; and#

4. (D)

   ‘‘Regulatory action level RBC’’ means the product of 1.5 and its authorized control level RBC.#

‘‘RBC plan’’ means a comprehensive financial plan containing the elements specified in subsection (b) of Code Section 33-56-3. 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.#

‘‘RBC report’’ means the report required in Code Section 33-56-2.#

‘‘Total adjusted capital’’ means the sum of:#

1. (A)

   An insurer’s statutory capital and surplus, which in the case of a health organization shall be determined in accordance with the statutory accounting applicable to the annual financial statements required to be filed; and#

2. (B)

   Such other items, if any, as the RBC instructions may provide.#