§ 7-101
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/md/insurance/7-101A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§7–101.
(a)In this title the following words have the meanings indicated.
(b)“Affiliate” means a person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with another person.
(c)“Control”, “controlling”, “controlled by”, or “under common control with” means the direct or indirect possession of the power to direct or cause the direction of the management and policies of a person, through ownership of voting securities or of securities convertible into voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, whether or not the power is exercised or sought to be exercised unless the power is the result of an official position with or corporate office held by the person.
(1)“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 on the financial condition or liquidity of the insurer or its insurance holding company system as a whole.
(2)“Enterprise risk” includes anything that would:
(i)cause the insurer’s risk based capital to fall to or below a company action level under Title 4, Subtitle 3 of this article; or
(ii)cause the insurer to be in a hazardous financial condition under § 9–102 of this article.
(e)“Group capital calculation instructions” means the group capital calculation instructions adopted by the NAIC, as amended from time to time.
(f)“Insurance holding company” means a person that directly or indirectly controls an insurer or controls a person that controls an insurer.
(g)“Insurance holding company system” means two or more affiliates, at least one of which is an insurer.
(h)“Lead state commissioner” means the lead state insurance commissioner of the insurance holding company system as determined by the procedures in the NAIC Financial Analysis Handbook.
(i)“NAIC” means the National Association of Insurance Commissioners.
(j)“NAIC liquidity stress test framework” means a separate NAIC publication that includes, as adopted by the NAIC and as amended:
(1)a history of the NAIC’s development of regulatory liquidity stress testing;
(2)the scope criteria applicable for a specific data year; and
(3)the liquidity stress test instructions and reporting templates for a specific data year.
(k)“Scope criteria” means the designated exposure bases along with minimum magnitudes of exposure for the specified data year, as detailed in the NAIC liquidity stress test framework, used to establish a preliminary list of insurers considered included in the scope of the NAIC liquidity stress test framework for that data year.
(l)“Subsidiary” means an affiliate of a person that, directly or indirectly, through one or more intermediaries, is controlled by that person.
(m)“Ultimate controlling person” means the person within a holding company system that is not controlled by any other person.