Sec. 38a-72-1 - Definitions

ยง 38a-72-1. Definitions

As used in sections 38a-72-1 to 38a-72-13, inclusive, of the Regulations of Connecticut State Agencies:

(a) "Adjusted RBC Report" means an RBC Report which has been adjusted by the commissioner in accordance with section 38a-72-2(e) of the Regulations of Connecticut State Agencies;

(b) "Commissioner" means the Insurance Commissioner of the State of Connecticut;

(c) "Corrective Order" means an order issued by the commissioner specifying corrective actions which the commissioner has determined are required;

(d) "Domestic insurer" means any insurance company domiciled in Connecticut;

(e) "Foreign insurer" means any insurance company that is licensed to do business in Connecticut under section 38a-41(a) of the Connecticut General Statutes but is not domiciled in Connecticut;

(f) "NAIC" means the National Association of Insurance Commissioners;

(g) "Life or health insurer" means any insurance company licensed under section 38a-41 of the Connecticut General Statutes, any licensed property and casualty insurer writing only accident and health insurance, or a fraternal benefit society, as described in section 38a-595 of the Connecticut General Statutes and including any foreign or alien society licensed under section 38a-601 of the Connecticut General Statutes;

(h) "Property and casualty insurer" means any insurance company licensed under section 38a-41 of the Connecticut General Statutes but shall not include monoline mortgage guaranty insurers, financial guaranty insurers and title insurers;

(i) "Negative Trend" means, with respect to a life or health insurer, a negative trend over a period of time, as determined in accordance with the "Trend Test Calculation" included in the Life RBC Instructions;

(j) "RBC" means risk based capital;

(k) "RBC Instructions" means 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;

(l) "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 the product of 1.5 and its Authorized Control Level RBC;

(3) "Authorized Control Level RBC" means the number determined under the risk-based capital formula in accordance with the RBC Instructions; and

(4) "Mandatory Control Level RBC" means the product of .70 and the Authorized Control Level RBC;

(m) "RBC Plan" means a comprehensive financial plan containing the elements specified in section 38a-72-3(b) of the Regulations of Connecticut State Agencies. 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";

(n) "RBC Report" means the report required in section 38a-72-2 of the Regulations of Connecticut State Agencies; and

(o) "Total Adjusted Capital" means the sum of: an insurer's statutory capital and surplus; and such other items, if any, as the RBC Instructions may provide.

(Effective September 28, 1994; Amended November 30, 2006; Amended August 1, 2014)

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