New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 39 - INCREASE IN CAPITAL AND SURPLUS REQUIREMENTS FOR INSURERS › Section 11:2-39.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.
"Adjusted RBC Report" means an RBC Report which has been adjusted by the Commissioner in accordance with 11:2-39.3(d).
"Commissioner" means the Commissioner of the Department of Banking and Insurance.
"Corrective order" means an order issued by the Commissioner in accordance with 11:2-39.5(b).
"Department" means the Department of Banking and Insurance.
"Domestic insurer" means an insurer formed under the laws of this State.
"Foreign insurer" means an insurer formed under the laws of a jurisdiction of the United States other than this State.
"Health maintenance organization" or "HMO" means any individual or entity that undertakes to provide or arrange for basic comprehensive health care services through an organized system that combines the delivery and financing of health care to members, and is licensed pursuant to 26:2J-1 et seq.
"Insurer" includes a life/health insurer and a property/casualty insurer.
"Life/health insurer" means an insurer authorized or admitted to transact life, health or annuities business pursuant to N.J.S.A. 17B:18-35 et seq., or 17B:23-1 et seq., as applicable, or an authorized or admitted property/casualty insurer writing only accident and health insurance.
"NAIC" means the National Association of Insurance Commissioners.
"NAIC RBC Instructions" means the form of the Risk-Based Capital Report and instructions for completing such form adopted by the NAIC, as such form and instructions may be amended by the NAIC from time to time in accordance with the procedures adopted by the NAIC.
"NAIC RBC Report" means the Risk-Based Capital Report prepared pursuant to the NAIC RBC Instructions as set forth in N.J.A.C. 11:2-39.3.
"Negative trend" means with respect to a life/health insurer a negative trend over a period of time, as determined in accordance with the "Trend Test Calculation" included in the NAIC RBC Instructions.
"Property/casualty insurer" means an insurer authorized, admitted or eligible to transact business pursuant to 17:17-1 et seq., 17:32-1 et seq., or 17:22-6.4 0 et seq., as applicable.
"RBC" means Risk-Based Capital.
"RBC Instructions" means the NAIC RBC Instructions as supplemented by the Commissioner.
"RBC Level" means an insurer's Company Action Level RBC, Regulatory Action Level RBC, Authorized Control Level RBC, or Mandatory Control Level RBC where:
1. "Company Action Level RBC" means, with respect to any insurer, the product of 2.0 and its Authorized Control Level RBC;
2. "Regulatory Action Level RBC" means, with respect to any insurer, the product of 1.5 and its Authorized Control Level RBC;
3. "Authorized Control Level RBC" means, with respect to any insurer, the number determined under the risk-based capital formula in accordance with the RBC Instructions; and
4. "Mandatory Control Level RBC" means, with respect to any insurer, the product of .70 and its Authorized Control Level RBC.
"RBC Plan" means a comprehensive financial plan containing the elements specified at 11:2-39.4(b). 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" means the NAIC RBC Report as supplemented pursuant to the RBC Instructions.
"Total adjusted capital" means an insurer's statutory capital and surplus as determined in accordance with statutory accounting applicable to the annual financial statements required to be filed pursuant to 17:23-1 et seq., and 17B:21-1 et seq., increased or decreased by such other items, if any, as the RBC Instructions may provide.