31A-17-601. Definitions.

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/4/2022

As used in this part:

(1)"Adjusted RBC report" means an RBC report that has been adjusted by the commissioner in accordance with Subsection 31A-17-602(5) .

(2)"Corrective order" means an order issued by the commissioner specifying corrective action that the commissioner determines is required.

(3)"Health organization" means:

(a)an entity that is authorized under Chapter 7, Nonprofit Health Service Insurance Corporations , or Chapter 8, Health Maintenance Organizations and Limited Health Plans ; and

(b)that is:

(i)a health maintenance organization;

(ii)a limited health service organization;

(iii)a dental or vision plan;

(iv)a hospital, medical, and dental indemnity or service corporation; or

(v)other managed care organization.

(4)"Life or accident and health insurer" means:

(a)an insurance company licensed to write life insurance, accident and health insurance, or both; or

(b)a licensed property casualty insurer writing only disability insurance.

(5)"Property and casualty insurer" means any insurance company licensed to write lines of insurance other than life but does not include a monoline mortgage guaranty insurer, financial guaranty insurer, or title insurer.

(6)"RBC" means risk-based capital.

(7)"RBC instructions" means the RBC report including the National Association of Insurance Commissioner's risk-based capital instructions that govern the year for which an RBC report is prepared.

(8)"RBC level" means an insurer's or health organization's authorized control level RBC, company action level RBC, mandatory control level RBC, or regulatory action level RBC.

(a)"Authorized control level RBC" means the number determined under the risk-based capital formula in accordance with the RBC instructions;

(b)"Company action level RBC" means the product of 2.0 and its authorized control level RBC;

(c)"Mandatory control level RBC" means the product of .70 and the authorized control level RBC; and

(d)"Regulatory action level RBC" means the product of 1.5 and its authorized control level RBC.

(a)"RBC plan" means a comprehensive financial plan containing the elements specified in Subsection 31A-17-603(2) .

(b)Notwithstanding Subsection (9)(a) , the plan is a "revised RBC plan" if:

(i)the commissioner rejects the RBC plan; and

(ii)the plan is revised by the insurer or health organization, with or without the commissioner's recommendation.

(10)"RBC report" means the report required in Section 31A-17-602 .

Amended by Chapter 198 , 2022 General Session