211 CMR 20.01 - Definitions
Current through Register 1466, April 1, 2022
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.
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