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The Vermont Statutes Online

 

Title 8 : Banking and Insurance

Chapter 159 : RISK BASED CAPITAL FOR INSURERS

(Cite as: 8 V.S.A. § 8301)
  • § 8301. Definitions

    As used in this chapter:

    (1) "Adjusted risk based capital report" means a risk based capital report which 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 which the Commissioner has determined are required under this chapter.

    (4) "Domestic insurer" means any insurance company organized in this State under subchapter 1 of chapter 101 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) "Life or health insurer" means any insurance company who insures lives or health as defined in subdivisions 3301(a)(1) and (2) of this title, any health maintenance organization organized in this State under chapter 139 of this title, any 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.

    (8) "NAIC" means the National Association of Insurance Commissioners.

    (9) "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.

    (10) "Property and casualty insurer" means any insurance company who 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, and title insurers.

    (11) "Risk based capital instructions" means the risk based capital report form and the related instructions adopted by the NAIC and approved by the Commissioner.

    (12) "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 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 the product of 0.70 and its authorized control level risk based capital.

    (13) "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."

    (14) "Risk based capital report" means the report required in section 8302 of this title.

    (15) "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.)