Louisiana § RS 22:611 - Definitions

§ RS 22:611. Definitions

As used in this Subpart, the following terms shall have the following meanings:

(1)  "Adjusted risk-based report" means a risk-based capital report which has been adjusted by the department in accordance with R.S. 22:612(C).

(2)  "Corrective order" means an order issued by the department specifying corrective actions which are required.

(3)  "Life or health and accident insurer" means any insurance company possessing a certificate of authority in the state that issues the kind of insurance listed in R.S. 22:47(1) or (2) or a property and casualty insurer possessing a certificate of authority in the state that issues only health and accident insurance as specified in R.S. 22:47(2).

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

(5)  "Negative trend" shall have that meaning, with respect to a life and/or health insurer, as determined in accordance with the trend test calculation included in the risk-based capital instructions.

(6)  "Property and casualty insurer" means any insurance company possessing a certificate of authority in the state that issues insurance other than the kinds specified in R.S. 22:47(1), (2), and (9).

(7)  "Risk-based capital instructions" means the risk-based capital report including risk-based capital instructions adopted by the NAIC, as such risk-based capital instructions may be amended by the NAIC from time to time in accordance with the procedures adopted by the NAIC.

(8)  "Risk-based capital level" means an action level risk-based capital, regulatory action level risk-based capital, authorized control level risk-based capital, or mandatory control level risk-based capital of an insurer where:

(a)  "Authorized-control level risk-based capital" means the number determined under the risk-based capital formula in accordance with the risk-based capital instructions.

(b)  "Company-action level risk-based capital" means two hundred percent of a company's authorized control level risk-based capital.

(c)  "Mandatory-control level risk-based capital" means seven-tenths of a company's authorized control level risk-based capital.

(d)  "Regulatory-action level risk-based capital" means one hundred fifty percent of a company's authorized control level risk-based capital.

(9)  "Risk-based capital plan" means a comprehensive financial plan containing the requirements of R.S. 22:613(B).  If the department rejects a risk-based capital plan, and it is revised by the insurer, with or without the recommendation of the department, the plan shall be designated a revised risk-based capital plan.

(10)  "Risk-based capital report" means the report required pursuant to R.S. 22:612.

(11)  "Total adjusted capital" means the sum of:

(a)  An insurer's statutory capital and surplus.

(b)  Such other items, if any, as required by Paragraph (7) of this Section.

Acts 1995, No. 1203, §1, eff. June 29, 1995; Redesignated from R.S. 22:860 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2009, No. 503, §1; Acts 2012, No. 359, §1.

NOTE:  Former R.S. 22:611 redesignated as R.S. 22:851 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009.