§ 22:691.2 — Definitions

Louisiana § 22:691.2

• Jurisdiction: Louisiana
• Title 22: Insurance

Text

§691.2. Definitions
As used in this Subpart, the following terms have the meanings ascribed in this
Section unless the context clearly requires otherwise:
(1) "Affiliate" means a person that directly or indirectly, through one or more
intermediaries, controls, or is controlled by, or is under common control with, the person
specified.
(2) "Commissioner" means the commissioner of insurance, the commissioner's
deputies, or the Department of Insurance, as appropriate.
(3) "Control", including the terms "controlling", "controlled by", and "under common
control with", means the possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of a person, whether through the ownership of
voting securities, by contract other than a commercial contract for goods or nonmanagement
services, or otherwise, unless the power is the result of an official position with or corporate
office held by the person. Control shall be presumed to exist if any person, directly or
indirectly, owns, controls, holds with the power to vote, or holds proxies representing, ten
percent or more of the voting securities of any other person. This presumption may be
rebutted by a showing made in the manner provided by R.S. 22:691.4(E) and 691.6(K) that
control does not exist in fact. The commissioner may determine that control exists in fact,
notwithstanding the absence of a presumption to that effect.
(4) "Enterprise risk" means any activity, circumstance, event, or series of events
involving one or more affiliates of an insurer that, if not remedied promptly, is likely to have
a material adverse effect upon the financial condition or liquidity of the insurer or its
insurance holding company system as a whole, including but not limited to anything that
would cause the insurer's risk-based capital to fall into company action level as set forth in
R.S. 22:611 et seq., and 631 et seq., or would cause the insurer to be in hazardous financial
condition.
(5) "Federal reserve" means the Board of Governors of the Federal Reserve System,
as provided in 12 U.S.C. 241.
(6) "Group capital calculation instructions" means the group capital calculation
instructions as adopted by the NAIC and as amended by the NAIC in accordance with the
procedures adopted by the NAIC.
(7) "Group-wide supervisor" means the regulatory official authorized to engage in
conducting and coordinating group-wide supervision activities who is determined or
acknowledged by the commissioner pursuant to R.S. 22:691.9.1 to have sufficient significant
contacts with the internationally active insurance group.
(8) An "insurance holding company system" consists of two or more affiliated
persons, one or more of which is an insurer.
(9) "Insurer" shall have the same meaning as set forth in R.S. 22:46(10). For the
purposes of this Subpart, a health maintenance organization as defined R.S. 22:242(7) shall
also be considered an insurer. The term "insurer" shall not include agencies, authorities, or
instrumentalities of the United States, its possessions and territories, the Commonwealth of
Puerto Rico, the District of Columbia, or a state or political subdivision of a state.
(10) "Internationally active insurance group" means an insurance holding company
system that:
(a) Includes an insurer registered pursuant to R.S. 22:691.6.
(b) Meets the following criteria:
(i) Premiums are written in at least three countries.
(ii) The percentage of gross premiums written outside the United States is at least
ten percent of the insurance holding company system's total gross written premiums.
(iii) Based on a three-year rolling average, the total assets of the insurance holding
company system are at least fifty billion dollars or the total gross written premiums of the
insurance holding company system are at least ten billion dollars.
(11) "NAIC" means the National Association of Insurance Commissioners.
(12) "NAIC liquidity stress test framework" means the separate NAIC publication
which includes a history of the NAIC's development of regulatory liquidity stress testing, the
scope criteria applicable for a specific data year, and the liquidity stress test instructions and
reporting templates for a specific data year, such scope criteria, instructions, and reporting
template being as adopted by the NAIC and amended by the NAIC in accordance with the
procedures adopted by the NAIC.
(13) "Person" means an individual, a corporation, a limited liability company, a
partnership, an association, a joint stock company, a trust, an unincorporated organization,
any similar entity or any combination of the foregoing acting in concert, but shall not include
any joint venture partnership exclusively engaged in owning, managing, leasing, or
developing immovable or corporeal movable property.
(14) "Scope criteria" as detailed in the NAIC liquidity stress test framework means
the designated exposure bases along with minimum magnitudes thereof for the specific data
year, used to establish a preliminary list of insurers considered scoped into the NAIC
liquidity stress test framework for that data year.
(15) A "securityholder" of a specified person is one who owns any security of such
person, including common stock, preferred stock, debt obligations, and any other security
convertible into or evidencing the right to acquire any of the foregoing.
(16) A "subsidiary" of a specified person is an affiliate controlled by such person
directly or indirectly through one or more intermediaries.
(17) "Voting security" shall include any security convertible into or evidencing a
right to acquire a voting security.

Legislative History

Acts 2012, No. 294, §1; Acts 2015, No. 196, §1, eff. Jan. 1, 2016; Acts 2022, No. 713, §1.