Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 13 - RISK-BASED CAPITAL ACT (§§ 23-63-1301 — 23-63-1316) › Section 23-63-1302 - Definitions

As used in this subchapter:
(1)
"Adjusted RBC report" means a risk-based capital report that has been adjusted by the Insurance Commissioner under §
23-63-1303(e)
;
(2)
"Corrective order" means an order issued by the commissioner specifying corrective actions that the commissioner has determined are needed;
(3)
"Domestic insurer" means an insurance company domiciled in this state;
(4)
"Foreign insurer" means an insurance company that may do business in this state under §
23-63-201
et seq. but is not domiciled in this state;
(5)
"Fraternal benefit society" means an insurance company or society organized and licensed under Arkansas Code Title 23, Chapter 74;
(6)
"Life or accident and health insurer" means:
(A)
An insurance company authorized to transact a life or accident and health insurance business under §
23-63-201
et seq.; or
(B)
An authorized property and casualty insurer writing only accident and health insurance;
(7)
"NAIC" means the National Association of Insurance Commissioners;
(8)
"Negative trend" means, with respect to a life or accident and health insurer or a fraternal benefit society, a negative trend over a period, as determined according to the trend test calculation included in the RBC instructions for a life or accident and health insurer or RBC instructions for a fraternal benefit society;
(9)
(A)
"Property or casualty insurer" means an insurance company authorized to transact property or casualty insurance business under §
23-63-201
et seq., including farmers' mutual aid associations and fraternal benefit societies.
(B)
"Property or casualty insurer" does not include:
(i)
Monoline mortgage guaranty insurers;
(ii)
Financial guaranty insurers; or
(iii)
Title insurers;
(10)
"RBC" means risk-based capital;
(11)
"RBC instructions" means the RBC report including risk-based capital instructions adopted by the NAIC, as amended by the NAIC;
(12)
"RBC level" means an insurer's company action level RBC, regulatory action level RBC, authorized control level RBC, or mandatory control level RBC when:
(A)
"Authorized control level RBC" means the number determined under the risk-based capital formula according to the RBC instructions;
(B)
"Company action level RBC" means, with respect to an insurer, the product of two (2) and its authorized control level RBC;
(C)
"Mandatory control level RBC" means the product of seven-tenths of one percent (0.7%) and the authorized control level RBC; and
(D)
"Regulatory action level RBC" means the product of one and five-tenths (1.5) and its authorized control level RBC;
(13)
"RBC plan" means a comprehensive financial plan containing the elements named in §
23-63-1304(b)
. If the commissioner rejects the RBC plan and it is revised by the insurer with or without the commissioner's recommendation, the plan is called the "revised RBC plan";
(14)
"RBC report" means the report required under §
23-63-1303
; and
(15)
"Total adjusted capital" means the sum of:
(A)
An insurer's statutory capital and surplus as determined according to the statutory accounting applicable to the annual financial statements required under §
23-63-216
; and
(B)
Other items, if any, that the RBC instructions may provide.
Amended by Act 2015, No. 1223,§ 21, eff. 7/22/2015.
Amended by Act 2015, No. 1223,§ 20, eff. 7/22/2015.
Acts 1995, No. 622, § 1; 1999, No. 625, § 1; 2001, No. 1603, §§ 11, 12; 2003, No. 1473, § 52; 2011, No. 760, § 4.