§ 5801 — Definitions [For severability of this subchapter, see 70 Del. Laws, c. 234, § 2]

Delaware § 5801

• Jurisdiction: Delaware
• Title: 18
• Part: Insurance
• Ch. 58: RISK-BASED CAPITAL (RBC)
• Subch.: Risk-Based Capital (RBC) for Insurers [For severability of this subchapter, see 70 Del. Laws, c. 234, § 2]

Text

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

(1) “Adjusted RBC Report” means an RBC report which has been adjusted by the Commissioner in accordance with § 5802(e) of this title.

(2) “Corrective order” means an order issued by the Commissioner specifying corrective actions which the Commissioner has determined are required.

(3) “Domestic insurer” means any insurance company domiciled in this State, except insurers not doing business with citizens or residents of the United States or organized or located within the United States.

(4) “Foreign insurer” means any insurance company which is licensed to do business in this State under § 516 of this title, but is not domiciled in this State.

(5) “Life and/or health insurer” means any insurance company licensed under § 516 of this title, or a licensed property and casualty insurer writing only accident and health insurance.

(6) “NAIC” means the National Association of Insurance Commissioners.

(7) “Negative trend” means, with respect to a life and/or health insurer, negative trend over a period of time, as determined in accordance with the Trend Test Calculation included in the RBC Instructions.

(8) “Property and casualty insurer” means any insurance company licensed under § 516 of this title, but shall not include monoline mortgage guaranty insurers, financial guaranty insurers and title insurers.

(9) “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.

(10) “RBC level” means an insurer’s Company Action Level RBC, Regulatory Action Level RBC, Authorized Control Level RBC, or Mandatory Control Level RBC where:

a. “Company Action Level RBC” means, with respect to any insurer, 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 under the risk-based capital formula in accordance with the RBC Instructions;

d. “Mandatory Control Level RBC” means the product of .70 and the Authorized Control Level RBC.

(11) “RBC plan” means a comprehensive financial plan containing the elements specified in § 5803(b) of this title. 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.

(12) “RBC report” means the report required in § 5802 of this title.

(13) “Total adjusted capital” means the sum of:

a. An insurer’s statutory capital and surplus; and

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

Legislative History

70 Del. Laws, c. 234, § 1 ; 79 Del. Laws, c. 425, § 2