60A.60 DEFINITIONS.
549 words·~2 min read·
/mn/chapter-60/60a-60A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
60A.60 DEFINITIONS.
§
Subdivision 1. Scope.
For the purposes of sections 60A.60 to 60A.696 , the terms defined in this section have the meanings given them.
§
Subd. 2. Adjusted risk-based capital report.
"Adjusted risk-based capital report" means a risk-based capital report that has been adjusted by the commissioner according to section 60A.61, subdivision 5 .
§
Subd. 3. Corrective order.
"Corrective order" means an order issued by the commissioner specifying corrective actions that the commissioner has determined are required.
§
Subd. 4. Domestic insurer.
"Domestic insurer" means an insurance company incorporated or organized in this state.
§
Subd. 5. Foreign insurer.
"Foreign insurer" means an insurance company that is admitted to do business in this state under section 60A.19 but is not incorporated or organized in this state.
§
Subd. 6. NAIC.
"NAIC" means the National Association of Insurance Commissioners.
§
Subd. 7. Life and/or health insurer.
"Life and/or health insurer" means an insurance company authorized to transact business under section 60A.06, subdivision 1 , clause (4), or a property and casualty insurer transacting business only under section 60A.06, subdivision 1 , clause (5)(a).
§
Subd. 8. Property and casualty insurer.
"Property and casualty insurer" means an insurance company authorized to transact business under section 60A.06, subdivision 1 , clauses (1), (2), (3), (5), (6), (8), (9), (10), (11), (12), (13), (14), and (15), but does not include monoline mortgage guaranty insurers, and financial guaranty insurers.
§
Subd. 9. Negative trend.
"Negative trend" means negative trend over a period of time, as determined according to the "trend test calculation" included in the risk-based capital instructions.
§
Subd. 10. Risk-based capital instructions.
"Risk-based capital instructions" means the risk-based capital report including risk-based capital instructions adopted by the NAIC, as those risk-based instructions may be amended by the NAIC from time to time according to the procedures adopted by the NAIC.
§
Subd. 11. Risk-based capital level.
"Risk-based capital level" means an insurer's company action level risk-based capital, regulatory action level risk-based capital, authorized control level risk-based capital, or mandatory control level risk-based capital where:
(1)"company action level risk-based capital" means, with respect to an insurer, the product of 2.0 and its authorized control level risk-based capital;
(2)"regulatory action level risk-based capital" means the product of 1.5 and its authorized control level risk-based capital;
(3)"authorized control level risk-based capital" means the number determined under the risk-based capital formula according to the risk-based capital instructions;
(4)"mandatory control level risk-based capital" means the product of .70 and the authorized control level risk-based capital.
§
Subd. 12. Risk-based capital plan.
"Risk-based capital plan" means a comprehensive financial plan containing the elements specified in section 60A.62, subdivision 2 . If the commissioner rejects the risk-based capital plan, and it is revised by the insurer, with or without the commissioner's recommendation, the plan must be called the "revised risk-based capital plan."
§
Subd. 13. Risk-based capital report.
"Risk-based capital report" means the report required in section 60A.61 .
§
Subd. 14. Total adjusted capital.
"Total adjusted capital" means the sum of:
(1)an insurer's statutory capital and surplus as determined in accordance with statutory accounting applicable to the annual statement required to be filed under section 60A.13 ; and
(2)other items, if any, as the risk-based capital instructions may provide.