Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 20.00 - Risk-based Capital (rbc) For Insurers › Section 20.01 - Definitions

Current through Register 1525, July 5, 2024
The following words as used in
				211 CMR 20.00 shall, unless
				the context requires otherwise, have the following meanings:
Adjusted RBC Report
. An RBC report
				which has been adjusted by the Commissioner in accordance with
				211 CMR
				20.02(5).
Commissioner
. The Commissioner of
				Insurance, appointed pursuant to M.G.L. c. 26, § 6 or his or her
				designee.
Corrective Order
. An order issued by
				the Commissioner pursuant to
				211 CMR
				20.04(2)(c), specifying
				corrective actions which the Commissioner has determined are required.
Domestic Insurer
. Any insurance
				company domiciled in Massachusetts.
Filing Date
. March
				1st.
Foreign Insurer
. Any insurance company
				which is licensed to do an insurance business in Massachusetts but is not
				domiciled in Massachusetts.
Fraternal Benefit Society
. Any insurer
				organized under M.G.L. c. 176.
Life and/or Health Insurer
. Any
				insurance company which is authorized to write life and/or health insurance in
				Massachusetts.
NAIC
. The National Association of
				Insurance Commissioners.
Negative Trend
. With respect to a life
				and/or health insurer or a Fraternal Benefit Society, negative trend over a
				period of time, as determined in accordance with the "Trend Test Calculation"
				included in the RBC instructions.
Property and Casualty Insurer
. Any
				insurance company authorized to write property and casualty insurance in
				Massachusetts but shall not include monoline mortgage guaranty insurers,
				financial guaranty insurers and title insurers.
RBC Instructions
. The RBC Report
				including risk based capital instructions adopted by the NAIC, as such RBC
				instructions may be amended by the NAIC from time to time in accordance with
				the procedures adopted by the NAIC.
RBC Level
. An insurer's Company Action
				Level RBC, Regulatory Action Level RBC, Authorized Control Level RBC, or
				Mandatory Control Level RBC where:
Company Action Level RBC
. With respect
				to any insurer, the product of 2.0 and its Authorized Control Level RBC;
Regulatory Action Level RBC
. The
				product of 1.5 and its Authorized Control Level RBC;
Authorized Control Level RBC
. The
				number determined under the risk based capital formula in accordance with the
				RBC Instructions.
Mandatory Control Level RBC
. The
				product of .70 and the Authorized Control Level RBC.
RBC Plan
. A comprehensive financial
				plan containing the elements specified in
				211 CMR
				20.03(2). 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."
RBC Report
. The report required in
				211 CMR 20.02.
Total Adjusted Capital
. The sum
				of:
(a) An insurer's statutory capital and surplus as determined in
				accordance with the statutory accounting applicable to the annual financial
				statements required to be filed under M.G.L. c. 175, § 25; and
(b) Such other items, if any, as the RBC instructions may
				provide.