§ 23-63-1302 — Definitions

Arkansas § 23-63-1302

• Jurisdiction: Arkansas
• Title: 23

Text

As used in this subchapter: (1) "Adjusted RBC report" means a risk-based capital report that has been adjusted by the Insurance Commissioner under § 23-63-1303(e) ; (2) "Corrective order" means an order issued by the commissioner specifying corrective actions that the commissioner has determined are needed; (3) "Domestic insurer" means an insurance company domiciled in this state; (4) "Foreign insurer" means an insurance company that may do business in this state under § 23-63-201 et seq. but is not domiciled in this state; (5) "Fraternal benefit society" means an insurance company or society organized and licensed under Arkansas Code Title 23, Chapter 74; (6) "Life or accident and health insurer" means: (A) An insurance company authorized to transact a life or accident and health insurance business under § 23-63-201 et seq.; or (B) An authorized property and casualty insurer writing only accident and health insurance; (7) "NAIC" means the National Association of Insurance Commissioners; (8) "Negative trend" means, with respect to a life or accident and health insurer or a fraternal benefit society, a negative trend over a period, as determined according to the trend test calculation included in the RBC instructions for a life or accident and health insurer or RBC instructions for a fraternal benefit society; (9) (A) "Property or casualty insurer" means an insurance company authorized to transact property or casualty insurance business under § 23-63-201 et seq., including farmers' mutual aid associations and fraternal benefit societies. (B) "Property or casualty insurer" does not include: (i) Monoline mortgage guaranty insurers; (ii) Financial guaranty insurers; or (iii) Title insurers; (10) "RBC" means risk-based capital; (11) "RBC instructions" means the RBC report including risk-based capital instructions adopted by the NAIC, as amended by the NAIC; (12) "RBC level" means an insurer's company action level RBC, regulatory action level RBC, authorized control level RBC, or mandatory control level RBC when: (A) "Authorized control level RBC" means the number determined under the risk-based capital formula according to the RBC instructions; (B) "Company action level RBC" means, with respect to an insurer, the product of two (2) and its authorized control level RBC; (C) "Mandatory control level RBC" means the product of seven-tenths of one percent (0.7%) and the authorized control level RBC; and (D) "Regulatory action level RBC" means the product of one and five-tenths (1.5) and its authorized control level RBC; (13) "RBC plan" means a comprehensive financial plan containing the elements named 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 is called the "revised RBC plan"; (14) "RBC report" means the report required under § 23-63-1303 ; and (15) "Total adjusted capital" means the sum of: (A) An insurer's statutory capital and surplus as determined according to the statutory accounting applicable to the annual financial statements required under § 23-63-216 ; and (B) Other items, if any, that the RBC instructions may provide.

Legislative History

Amended by Act 2015, No. 1223,§ 21, eff. 7/22/2015. Amended by Act 2015, No. 1223,§ 20, eff. 7/22/2015. Acts 1995, No. 622, § 1; 1999, No. 625, § 1; 2001, No. 1603, §§ 11, 12; 2003, No. 1473, § 52; 2011, No. 760, § 4.