§ 26-48-101 — Definitions

Wyoming § 26-48-101

• Jurisdiction: Wyoming
• Title 26: Insurance Code
• Ch. 48: RISK-BASED CAPITAL

Text

(a) As used in this article:
(i) "Adjusted RBC report" means an RBC report which
has been adjusted by the commissioner in accordance with W.S.
26-48-102(d);
(ii) "Corrective order" means an order issued by the
commissioner specifying corrective actions which the
commissioner has determined are required;
(iii) "Domestic insurer" means any insurance company
formed under the laws of Wyoming excluding title insurers,
health maintenance organizations and hospital or medical service
insurers;
(iv) "Foreign insurer" means any insurance company
which is licensed to do business in this state but is not
domiciled in this state excluding title insurers, health
maintenance organizations and hospital or medical service
insurers;
(v) "NAIC" means the National Association of
Insurance Commissioners;
(vi) "Negative trend" means with respect to a life or
disability insurer a negative trend over a period of time, as
determined in accordance with the "trend test calculation"
included in the life RBC instructions;
(vii) "RBC" means risk-based capital;
(viii) "RBC instructions" means the RBC report
including risk-based capital instructions adopted by the
commissioner, and as may be amended by the commissioner;
(ix) "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 two (2) and its
authorized control level RBC;
(B) "Regulatory action level RBC" means the
product of one and one-half (1 1/2) 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. This number for life or
disability insurers is equal to fifty percent (50%) of the sum
of the business risk-based capital plus the square root of the
sum of the asset risk-based capital plus the interest rate
risk-based capital squared plus the insurance risk-based capital
squared. This number for property and casualty insurers is equal
to forty-five percent (45%) for 1995, fifty percent (50%) for
1996, and after, of the square root of the sum of the squares of
loss reserve risk, premiums written risk, investment risk and
credit risk, plus total investments in affiliates, noncontrolled
assets, guarantees for affiliates and contingent liabilities;
(D) "Mandatory control level RBC" means the
product of seven tenths (.7) and the authorized control level
RBC.
(x) "RBC plan" means a comprehensive financial plan
containing the elements specified in W.S. 26-48-103(b). 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";
(xi) "RBC report" means the report required in W.S.
26-48-102;
(xii) "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.
(xiii) "Life or disability insurer" means any
insurance company licensed in the lines of life, disability, or
both, or a licensed property and casualty insurer writing only
accident and health insurance, but shall not include health
maintenance organizations or hospital or medical service
insurers;
(xiv) "Property and casualty insurer" means any
insurance company licensed in the lines of property, casualty,
surety, marine and transportation, or any combination of these
lines, but shall not include monoline mortgage guaranty
insurers, financial guaranty insurers or title insurers.