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Current through October 23, 2012
For the purposes of this chapter, the term:
(1) "Adjusted RBC Report" means an RBC report that has been adjusted by the Commissioner in accordance with § 31-2002(g).
(2) "Commissioner" means the Commissioner of the Department of Insurance, Securities, and Banking.
(3) "Corrective order" means an order issued by the Commissioner specifying corrective actions which the Commissioner has determined are required.
(4) "District" means the District of Columbia.
(5) "Domestic insurer" means any insurance company domiciled in the District.
(6) "Foreign insurer" means any insurance company which is licensed to do business in the District, but is not domiciled in the District.
(7) "Life or health insurer" means any insurance company licensed to underwrite life or health insurance, 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, negative trend over a period of time, as determined in accordance with the "Trend Test Calculation" included in the RBC Instructions.
(10) "Property and casualty insurer" means any insurance company licensed to underwrite property and casualty insurance, but does not include monoline mortgage guaranty insurers, financial guaranty insurers, and title insurers.
(11) "RBC" means risk-based capital.
(12) "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.
(13) "RBC Level" means an insurer's Company Action Level RBC, Regulatory Action Level RBC, Authorized Control Level RBC, or Mandatory Control Level RBC where:
(A) "Company Action Level RBC" means, with respect to any insurer, the product of 2.0 and its Authorized Control Level RBC;
(B) "Regulatory Action Level RBC" means the product of 1.5 and its Authorized Control Level RBC;
(C) "Authorized Control Level RBC" means the number determined under the risk-based capital formula in accordance with the RBC Instructions; and
(D) "Mandatory Control Level RBC" means the product of .70 and the Authorized Control Level RBC.
(14) "RBC Plan" means a comprehensive financial plan containing the elements specified in § 31-2003(b). 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".
(15) "RBC Report" means the report required in § 31-2002.
(16) "Total adjusted capital" means the sum of:
(A) An insurer's statutory capital and surplus; and
(B) Such other items, if any, as the RBC Instructions may provide.
(17) "State" means any of the several states, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of Northern Mariana Islands.
(Apr. 9, 1997, D.C. Law 11-233, § 2, 44 DCR 765; Oct. 3, 2001, D.C. Law 14-28, § 2802, 48 DCR 6981; June 11, 2004, D.C. Law 15-166, § 4(l)(1), 51 DCR 2817.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 35-4601.
Effect of Amendments
D.C. Law 14-28, in par. (1), substituted "31-2002(g)" for "31-2002(c)".
D.C. Law 15-166, in par. (2), substituted "Commissioner of the Department of Insurance, Securities, and Banking" for "Commissioner of Insurance and Securities".
Emergency Act Amendments
For temporary (90 day) amendment of section, see § 2602 of Fiscal Year 2002 Budget Support Emergency Act of 2001 (D.C. Act 14-124, August 3, 2001, 48 DCR 7861).
For temporary (90 day) amendment of section, see § 4(l)(1) of Consolidation of Financial Services Emergency Amendment Act of 2004 (D.C. Act 15-381, February 27, 2004, 51 DCR 2653).
Legislative History of Laws
Law 11-233, the "Risk-Based Capital Act of 1996," was introduced in Council and assigned Bill No. 11-237, which was referred to the Committee on Consumer and Regulatory Affairs. The Bill was adopted on first and second readings on November 7, 1996, and December 3, 1996, respectively. Signed by the Mayor on December 24, 1996, it was assigned Act No. 11-493 and transmitted to both Houses of Congress for its review. D.C. Law 11-233 became effective on April 9, 1997.
For Law 15-166, see notes following § 31-1004.
Legislative History of Laws
Law 14-28, the "Fiscal Year 2002 Budget Support Act of 2001", was introduced in Council and assigned Bill No. 14-144, which was referred to the Committee Of the Whole. The Bill was adopted on first and second readings on May 1, 2001, and June 5, 2001, respectively. Signed by the Mayor on June 29, 2001, it was assigned Act No. 14-85 and transmitted to both Houses of Congress for its review. D.C. Law 14-28 became effective on October 3, 2001.
