§ 27-4.7-2 - Definitions.
SECTION 27-4.7-2
§ 27-4.7-2 Definitions. – As used in this chapter:
(1) "Adjusted RBC report" means an RBC report that has beenadjusted by the commissioner in accordance with § 27-4.7-3;
(2) "Corrective order" means an order issued by thecommissioner specifying corrective actions which the commissioner hasdetermined are required;
(3) "Commissioner" means the director of the department ofbusiness regulation;
(4) "Domestic health organization" means a healthorganization domiciled in this state;
(5) "Foreign health organization" means a health organizationthat is licensed or authorized to do business in this state pursuant to thistitle but is not domiciled in this state;
(6) "NAIC" means the National Association of InsuranceCommissioners;
(7) "Health organization" means a health maintenanceorganization, limited health service organization, dental or vision plan,hospital, medical, and dental indemnity or service corporation or other managedcare organization or any other entity providing a plan of health insurance,health benefits, or health services subject to this title. This definition doesnot include an organization that is licensed as either a life and healthinsurer or a property and casualty insurer pursuant to chapter 1 or chapter 2of this title and that is subject to either the life or property and casualtyRBC requirements;
(8) "RBC" means risk-based capital;
(9) "RBC instructions" means the RBC report, includingrisk-based capital instructions adopted by the NAIC, as these RBC instructionsmay be amended by the NAIC in accordance with the procedures adopted by theNAIC;
(10) "RBC level" means a health organization's company actionlevel RBC, regulatory action level RBC, authorized control level RBC, ormandatory control level RBC where:
(i) "Company action level RBC" means, with respect to anyhealth organization, the product of two (2.0) and its authorized control levelRBC;
(ii) "Regulatory action level RBC" means the product of oneand one-half (1.5) and its authorized control level RBC;
(iii) "Authorized control level RBC" means the numberdetermined under the risk-based capital formula in accordance with the RBCinstructions;
(iv) "Mandatory control level RBC" means the product of seventenths (.70) and the authorized control level RBC.
(11) "RBC plan" means a comprehensive financial plancontaining the elements specified in § 27-4.7-4(b). If the commissionerrejects the RBC plan, and it is revised by the health organization, with orwithout the commissioner's recommendation, the plan shall be called the"revised RBC plan";
(12) "RBC report" means the report required in §27-4.7-3;
(13) "Total adjusted capital" means the sum of:
(i) A health organization's statutory capital and surplus(i.e., net worth) as determined in accordance with the statutory accountingapplicable to the annual and quarterly financial statements required to befiled by health organizations pursuant to applicable sections of this title; and
(ii) Any other items, if any, that the RBC instructions mayprovide.