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 (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' 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. ording 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.
Arkansas Legal Code