2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 159 - Risk-Based Capital for Insurers › § 8301. Definitions

§ 8301. Definitions
As used in this chapter:
(1) “Adjusted risk-based capital report” means a risk-based capital report that has been adjusted by the Commissioner in accordance with subsection 8302(e) of this title.
(2) “Commissioner” means the Commissioner of Financial Regulation.
(3) “Corrective order” means an order issued by the Commissioner specifying corrective actions that the Commissioner has determined are required under this chapter.
(4) “Domestic insurer” means any insurance company organized in this State under chapter 101, subchapter 1 of this title, any fraternal benefit society organized in this State under chapter 121 of this title, any health maintenance organization organized in this State under chapter 139 of this title, and any entity organized in this State under chapter 123 or 125 of this title.
(5) “Fraternal benefit society” means any insurance company licensed under chapter 121 of this title.
(6) “Foreign insurer” means any entity licensed to transact business in this State that is required to file a risk-based capital statement in the state where the entity is domiciled.
(7) “Health maintenance organization” means any entity organized in the State under chapter 139 of this title.
(8) “Life or health insurer” means an insurance company that insures lives or health as defined in subdivisions 3301(a)(1) and (2) of this title, an entity organized in this State under chapter 123 or 125 of this title, or a licensed property and casualty insurer writing only accident and health insurance.
(9) “NAIC” means the National Association of Insurance Commissioners.
(10) “Negative trend” means, with respect to a life or health insurer or fraternal benefit society, negative trend over a period of time as determined in accordance with the trend test calculation included in the life or fraternal risk-based capital instructions.
(11) “Property and casualty insurer” means any insurance company that insures property or casualty as defined in subdivisions 3301(a)(3) and (7) of this title, but shall not include monoline mortgage guaranty insurers, financial guaranty insurers, or title insurers.
(12) “Risk-based capital instructions” means the risk-based capital report form and the related instructions adopted by the NAIC and approved by the Commissioner.
(13) “Risk-based capital level” means one of the following four levels: 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.
(A) “Company action level risk-based capital” means, with respect to any insurer, the product of 2.0 and its authorized control level risk-based capital.
(B) “Regulatory action level risk-based capital” means, with respect to any insurer, the product of 1.5 and its authorized control level risk-based capital.
(C) “Authorized control level risk-based capital” means the number determined under the risk-based capital formula in accordance with the risk-based capital instructions.
(D) “Mandatory control level risk-based capital” means, with respect to any insurer, the product of 0.70 and its authorized control level risk-based capital.
(14) “Risk-based capital plan” means a comprehensive financial plan containing the elements specified in subsection 8303(b) of this title. 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 shall be called the “revised risk-based capital plan.”
(15) “Risk-based capital report” means the report required in section 8302 of this title.
(16) “Total adjusted capital” means the sum of:
(A) the insurer’s statutory capital and surplus reported in the insurer’s annual statement under section 3561 of this title; and
(B) such other items, if any, as the risk-based capital instructions may provide. (Added 1993, No. 235 (Adj. Sess.), § 8, eff. June 21, 1994; amended 1995, No. 180 (Adj. Sess.), § 38(a); 2009, No. 137 (Adj. Sess.), § 14; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2013, No. 29, § 36, eff. May 13, 2013; 2021, No. 25, § 11, eff. May 12, 2021.)