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Alabama Code (Last Updated: November 28, 2014) |
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Title27 INSURANCE. |
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Chapter2B. RISK-BASED CAPITAL FOR INSURERS. |
§27-2B-2. Definitions.
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THIS SECTION WAS AMENDED BY ACT 2014-377 IN THE 2014 REGULAR SESSION, EFFECTIVE JANUARY 1, 2015. TO SEE THE AMENDED VERSION, SEE THE VERSION LABELED PENDING.
As used in this chapter, these terms shall have the following meanings:
(1) ADJUSTED RBC REPORT. An RBC report which has been adjusted by the commissioner in accordance with subsection (e) of Section 27-2B-3.
(2) CORRECTIVE ORDER. An order issued by the commissioner specifying corrective actions which the commissioner has determined are required.
(3) DOMESTIC INSURER. Any insurance company domiciled in this state.
(4) FOREIGN INSURER. Any insurance company which is licensed to do business in this state but not domiciled in this state.
(5) LIFE OR HEALTH INSURER. Any insurance company licensed to do business in this state and authorized to transact life and/or disability insurance, including a property and casualty insurer writing only disability insurance, but shall not include fraternal benefit societies, health care service corporations, dental service organizations, health maintenance organizations, dental plan organizations or mutual aid associations.
(6) NAIC. The National Association of Insurance Commissioners.
(7) NEGATIVE TREND. With respect to a life or health insurer, a negative trend over a period of time, as determined in accordance with the trend test calculation included in the RBC instructions.
(8) PROPERTY AND CASUALTY INSURER. Any insurance company licensed to do business in this state and authorized to transact property, marine, casualty and/or surety insurance, but shall not include monoline mortgage guaranty insurers, financial guaranty insurers and title insurers.
(9) RBC. Risk-based capital.
(10) RBC INSTRUCTIONS. The RBC report including risk-based capital instructions adopted by the NAIC, as the RBC instructions may be amended by the NAIC from time to time in accordance with the procedures adopted by the NAIC.
(11) RBC LEVEL. 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 2.0 and its authorized control level RBC.
b. "Regulatory action level RBC" means the product of 1.5 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.
d. "Mandatory control level RBC" means the product of .70 and the authorized control level RBC.
(12) RBC PLAN. A comprehensive financial plan containing the elements specified in subsection (b) of Section 27-2B-4. 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.
(13) RBC REPORT. The report required in Section 27-2B-3.
(14) STATUTORY CAPITAL AND SURPLUS. The combination of capital and surplus. As used in this definition, these terms shall have the following meanings:
a. Capital. At any particular time, the sum of (i) the par value of all shares of the insurer having a par value that have been issued, (ii) the amount of consideration received by the insurer for all shares of the insurer without par value that have been issued, except any part of the consideration therefor as may have been allocated to surplus in a manner permitted by law, and (iii) any amounts not included in clauses (i) and (ii) of this subdivision as have been transferred to capital of the insurer, whether upon the issue of shares as a share dividend or otherwise, minus all reductions from the sum as have been affected in a manner permitted by law.
b. Surplus. The excess of the net admitted assets of an insurer over its capital. As used in this definition, "net admitted assets" means the excess of admitted assets of an insurer over its liabilities.
(15) TOTAL ADJUSTED CAPITAL. The sum of:
a. An insurer's statutory capital and surplus.
b. Other items, if any, as the RBC instructions may provide.