40-2c01. Risk-based capital requirements; definitions.
40-2c01
40-2c01. Risk-based capital requirements;definitions.As used in this act:
(a) "Adjusted RBC report" means an RBC report which has been adjusted by thecommissioner in accordance with K.S.A. 40-2c04, and amendmentsthereto.
(b) "Corrective order" means an order issued by the commissioner specifyingcorrective actions which the commissioner has determined are required toaddress a RBC level event.
(c) "Domestic insurer" means any insurance company or risk retention groupwhich is licensed and organized in this state.
(d) "Foreign insurer" means any insurance company or risk retention group notdomiciled in this state which is licensed or registered to do business in thisstate pursuant to article 41 of chapter 40 of the Kansas Statutes Annotated orK.S.A. 40-209, and amendments thereto.
(e) "NAIC" means the national association of insurance commissioners.
(f) "Life and health insurer" means any insurance company licensed underarticle 4 or 5 of chapter 40 of the Kansas Statutes Annotated or a licensedproperty and casualty insurer writing only accident and health insurance.
(g) "Property and casualty insurer" means any insurance company licensedunder articles 9, 10, 11, 12, 12a, 15 or 16 of chapter 40 of the KansasStatutes Annotated, but shall not include monoline mortgage guaranty insurers,financial guaranty insurers and title insurers.
(h) "Negative trend" means, with respect to a life and health insurer, anegative trend over a period of time, as determined in accordance with the"trend test calculation" included in the RBC instructions defined in subsection(j).
(i) "RBC" means risk-based capital.
(j) "RBC instructions" mean the risk-basedcapitalinstructions promulgated by the NAIC, which are in effect on December 31,2008, or any later version promulgated by the NAIC as may beadopted by the commissioner under K.S.A. 2009 Supp. 40-2c29, and amendmentsthereto.
(k) "RBC level" means an insurer's company action level RBC, regulatoryaction level RBC, authorized control level RBC, or mandatory control level RBCwhere:
(1) "Company action level RBC" means, with respect to any insurer, theproduct of 2.0 and its authorized control level RBC;
(2) "regulatory action level RBC" means the product of 1.5 and itsauthorized control level RBC;
(3) "authorized control level RBC" means the number determined under therisk-based capital formula in accordance with the RBC instructions; and
(4) "mandatory control level RBC" means the product of .70 and theauthorized control level RBC.
(l) "RBC plan" means a comprehensive financial plan containing the elementsspecified in K.S.A. 40-2c06, and amendments thereto. If thecommissioner rejects the RBC plan, and it is revised by the insurer, with orwithout the commissioner's recommendation, the plan shall be called the"revised RBC plan."
(m) "RBC report" means the report required by K.S.A.40-2c02, and amendments thereto.
(n) "Total adjusted capital" means the sum of:
(1) An insurer's capital and surplus or surplus only if a mutual insurer;and
(2) such other items, if any, as the RBC instructions may provide.
(o) "Commissioner" means the commissioner of insurance.
History: L. 1994, ch. 138, § 1;L. 1996, ch. 134, § 1;L. 1997, ch. 53, § 1;L. 1998, ch. 15, § 1;L. 1999, ch. 31, § 1;L. 2000, ch. 170, § 8;L. 2001, ch. 61, § 1;L. 2002, ch. 158, § 22;L. 2003, ch. 21, § 1;L. 2004, ch. 159, § 7;L. 2005, ch. 28, § 1;L. 2006, ch. 122, § 1;L. 2007, ch. 40, § 1;L. 2008, ch. 134, § 3;L. 2009, ch. 83, § 21; July 1.