{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-5501.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-5501.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-5501.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-5501.html"}],"law_id":67232,"edition_id":1,"section_id":67232,"structure_id":14894,"section_number":"38.2-5501","catch_line":"Definitions","history":"1995, c. 789; 2000, c. 47; 2007, c. 360; 2012, c. 156; 2014, c. 309.","full_text":"As used in this chapter, the following terms shall have the following meanings:\n\t\t“Adjusted RBC Report” means an RBC report which has been adjusted by the Commission in accordance with subsection F of \u00a7 38.2-5502.\n\t\t“Capital and surplus” or “capital,” except when used in the term “risk-based capital” or “adjusted capital,” means net worth of a health maintenance organization and, for all other licensees, means surplus to policyholders.\n\t\t“Corrective Order” means an order issued by the Commission specifying corrective actions which the Commission has determined are required.\n\t\t“Delinquency proceeding” means any proceeding commenced against a licensee for the purpose of liquidating, rehabilitating, reorganizing or conserving a licensee pursuant to the provisions of Chapter 15 (\u00a7 38.2-1500 et seq.).\n\t\t“Domestic health organization” means a health organization domiciled in this Commonwealth.\n\t\t“Domestic insurer” means any domestic company which has obtained a license to engage in insurance transactions in this Commonwealth in accordance with the applicable provisions of Chapter 10 (\u00a7 38.2-1000 et seq.) or Chapter 41 (\u00a7 38.2-4100 et seq.).\n\t\t“Domestic licensee” means and includes a domestic insurer and a domestic health organization.\n\t\t“Foreign health organization” means a health organization not domiciled in this Commonwealth which is licensed to do business in this Commonwealth.\n\t\t“Foreign insurer” means any company not domiciled in this Commonwealth which has obtained a license to engage in insurance transactions in this Commonwealth in accordance with the applicable provisions in Chapter 10 (\u00a7 38.2-1000 et seq.) or Chapter 41 (\u00a7 38.2-4100 et seq.).\n\t\t“Foreign licensee” means and includes a foreign insurer and a foreign health organization.\n\t\t“Health organization” means an insurer that is required by the Commission to use the NAIC’s Health Annual Statement blank when filing the annual statement prescribed by \u00a7 38.2-1300, or a corporation licensed pursuant to Chapter 42 (\u00a7 38.2-4200 et seq.) operating a health or hospital services plan in the Commonwealth, or a health maintenance organization or limited health maintenance organization licensed pursuant to Chapter 43 (\u00a7 38.2-4300 et seq.), or a corporation licensed pursuant to Chapter 45 (\u00a7 38.2-4500 et seq.) and operating a dental or optometric services plan in the Commonwealth, or a dental plan organization licensed pursuant to Chapter 61 (\u00a7 38.2-6100 et seq.).\n\t\t“Licensee” means and includes a life and health insurer, a property and casualty insurer, and a health organization.\n\t\t“Life and health insurer” means any domestic insurer or foreign insurer, whether known as a life insurer or a property and casualty insurer or a reciprocal or a fraternal benefit society, which is authorized to write any class of life insurance, annuities, or accident and sickness insurance, and is not writing a class of insurance set forth in \u00a7\u00a7 38.2-110 through 38.2-132, provided that “life and health insurer” shall not include any insurer which is required by the Commission to use the NAIC’s Health Annual Statement blank when filing the annual statement prescribed by \u00a7 38.2-1300.\n\t\t“NAIC” means the National Association of Insurance Commissioners.\n\t\t“Negative Trend,” with respect to a life and health insurer, means a negative trend over a period of time, as determined in accordance with the “Trend Test Calculation” included in the Life RBC Instructions.\n\t\t“Property and casualty insurer” means any domestic insurer or foreign insurer which is authorized under any chapter of this title to write any class of insurance except a class of life insurance or annuities, provided that “property and casualty insurer” shall not include monoline mortgage guaranty insurers, financial guaranty insurers and title insurers, nor shall it include any insurer which is required by the Commission to use the NAIC’s Health Annual Statement blank when filing the annual statement prescribed by \u00a7 38.2-1300.\n\t\t“RBC” means risk-based capital.\n\t\t“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.\n\t\t“RBC Level” means a licensee’s Company Action Level RBC, Regulatory Action Level RBC, Authorized Control Level RBC, or Mandatory Control Level RBC where:\n\n1\n\n“Company Action Level RBC” means, with respect to any licensee, the product of 2.0 and its Authorized Control Level RBC;2\n\n“Regulatory Action Level RBC” means the product of 1.5 and its Authorized Control Level RBC;3\n\n“Authorized Control Level RBC” means the number determined under the risk-based capital formula in accordance with the RBC Instructions;4\n\n“Mandatory Control Level RBC” means the product of 0.70 and the Authorized Control Level RBC.\n\t\t\t“RBC Plan” means a comprehensive financial plan containing the elements specified in subsection B of § 38.2-5503. If the Commission rejects the RBC Plan, and it is revised by the licensee, with or without the Commission’s recommendation, the plan shall be called the “Revised RBC Plan.”\n\t\t\t“RBC Report” means the report required in § 38.2-5502.\n\t\t\t“Total Adjusted Capital” means the sum of:1\n\nA licensee’s statutory capital and surplus as determined in accordance with statutory accounting applicable to the annual financial statements required to be filed under § 38.2-1300; and2\n\nSuch other items, if any, as the RBC Instructions may provide.","order_by":null,"text":{"0":{"id":243691,"text":"As used in this chapter, the following terms shall have the following meanings:\n\t\t“Adjusted RBC Report” means an RBC report which has been adjusted by the Commission in accordance with subsection F of \u00a7 38.2-5502.\n\t\t“Capital and surplus” or “capital,” except when used in the term “risk-based capital” or “adjusted capital,” means net worth of a health maintenance organization and, for all other licensees, means surplus to policyholders.\n\t\t“Corrective Order” means an order issued by the Commission specifying corrective actions which the Commission has determined are required.\n\t\t“Delinquency proceeding” means any proceeding commenced against a licensee for the purpose of liquidating, rehabilitating, reorganizing or conserving a licensee pursuant to the provisions of Chapter 15 (\u00a7 38.2-1500 et seq.).\n\t\t“Domestic health organization” means a health organization domiciled in this Commonwealth.\n\t\t“Domestic insurer” means any domestic company which has obtained a license to engage in insurance transactions in this Commonwealth in accordance with the applicable provisions of Chapter 10 (\u00a7 38.2-1000 et seq.) or Chapter 41 (\u00a7 38.2-4100 et seq.).\n\t\t“Domestic licensee” means and includes a domestic insurer and a domestic health organization.\n\t\t“Foreign health organization” means a health organization not domiciled in this Commonwealth which is licensed to do business in this Commonwealth.\n\t\t“Foreign insurer” means any company not domiciled in this Commonwealth which has obtained a license to engage in insurance transactions in this Commonwealth in accordance with the applicable provisions in Chapter 10 (\u00a7 38.2-1000 et seq.) or Chapter 41 (\u00a7 38.2-4100 et seq.).\n\t\t“Foreign licensee” means and includes a foreign insurer and a foreign health organization.\n\t\t“Health organization” means an insurer that is required by the Commission to use the NAIC’s Health Annual Statement blank when filing the annual statement prescribed by \u00a7 38.2-1300, or a corporation licensed pursuant to Chapter 42 (\u00a7 38.2-4200 et seq.) operating a health or hospital services plan in the Commonwealth, or a health maintenance organization or limited health maintenance organization licensed pursuant to Chapter 43 (\u00a7 38.2-4300 et seq.), or a corporation licensed pursuant to Chapter 45 (\u00a7 38.2-4500 et seq.) and operating a dental or optometric services plan in the Commonwealth, or a dental plan organization licensed pursuant to Chapter 61 (\u00a7 38.2-6100 et seq.).\n\t\t“Licensee” means and includes a life and health insurer, a property and casualty insurer, and a health organization.\n\t\t“Life and health insurer” means any domestic insurer or foreign insurer, whether known as a life insurer or a property and casualty insurer or a reciprocal or a fraternal benefit society, which is authorized to write any class of life insurance, annuities, or accident and sickness insurance, and is not writing a class of insurance set forth in \u00a7\u00a7 38.2-110 through 38.2-132, provided that “life and health insurer” shall not include any insurer which is required by the Commission to use the NAIC’s Health Annual Statement blank when filing the annual statement prescribed by \u00a7 38.2-1300.\n\t\t“NAIC” means the National Association of Insurance Commissioners.\n\t\t“Negative Trend,” with respect to a life and health insurer, means a negative trend over a period of time, as determined in accordance with the “Trend Test Calculation” included in the Life RBC Instructions.\n\t\t“Property and casualty insurer” means any domestic insurer or foreign insurer which is authorized under any chapter of this title to write any class of insurance except a class of life insurance or annuities, provided that “property and casualty insurer” shall not include monoline mortgage guaranty insurers, financial guaranty insurers and title insurers, nor shall it include any insurer which is required by the Commission to use the NAIC’s Health Annual Statement blank when filing the annual statement prescribed by \u00a7 38.2-1300.\n\t\t“RBC” means risk-based capital.\n\t\t“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.\n\t\t“RBC Level” means a licensee’s Company Action Level RBC, Regulatory Action Level RBC, Authorized Control Level RBC, or Mandatory Control Level RBC where:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":243692,"text":"“Company Action Level RBC” means, with respect to any licensee, the product of 2.0 and its Authorized Control Level RBC;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":243693,"text":"“Regulatory Action Level RBC” means the product of 1.5 and its Authorized Control Level RBC;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":243694,"text":"“Authorized Control Level RBC” means the number determined under the risk-based capital formula in accordance with the RBC Instructions;","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":243695,"text":"“Mandatory Control Level RBC” means the product of 0.70 and the Authorized Control Level RBC.\n\t\t\t“RBC Plan” means a comprehensive financial plan containing the elements specified in subsection B of § 38.2-5503. If the Commission rejects the RBC Plan, and it is revised by the licensee, with or without the Commission’s recommendation, the plan shall be called the “Revised RBC Plan.”\n\t\t\t“RBC Report” means the report required in § 38.2-5502.\n\t\t\t“Total Adjusted Capital” means the sum of:","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"1"},"5":{"id":243696,"text":"A licensee’s statutory capital and surplus as determined in accordance with statutory accounting applicable to the annual financial statements required to be filed under § 38.2-1300; and","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"4","next_prefix":"2"},"6":{"id":243697,"text":"Such other items, if any, as the RBC Instructions may provide.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1"}},"ancestry":[{"id":14894,"edition_id":1,"name":"Risk-Based Capital Act","identifier":"55","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:50:37","date_modified":"2026-06-26 03:50:37","permalink":{"id":217847,"object_type":"structure","relational_id":14894,"identifier":"55","token":"38.2\/55","url":"\/38.2\/55\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":68244,"structure_id":14894,"section_number":"38.2-5500","catch_line":"Applicability","url":"\/38.2-5500\/","token":"38.2\/55\/38.2-5500","metadata":false},{"id":67232,"structure_id":14894,"section_number":"38.2-5501","catch_line":"Definitions","url":"\/38.2-5501\/","token":"38.2\/55\/38.2-5501","metadata":false},{"id":68713,"structure_id":14894,"section_number":"38.2-5502","catch_line":"RBC Reports","url":"\/38.2-5502\/","token":"38.2\/55\/38.2-5502","metadata":false},{"id":72298,"structure_id":14894,"section_number":"38.2-5503","catch_line":"Company Action Level Event","url":"\/38.2-5503\/","token":"38.2\/55\/38.2-5503","metadata":false},{"id":86775,"structure_id":14894,"section_number":"38.2-5504","catch_line":"Regulatory Action Level Event","url":"\/38.2-5504\/","token":"38.2\/55\/38.2-5504","metadata":false},{"id":85425,"structure_id":14894,"section_number":"38.2-5505","catch_line":"Authorized Control Level Event","url":"\/38.2-5505\/","token":"38.2\/55\/38.2-5505","metadata":false},{"id":69962,"structure_id":14894,"section_number":"38.2-5506","catch_line":"Mandatory Control Level Event","url":"\/38.2-5506\/","token":"38.2\/55\/38.2-5506","metadata":false},{"id":81704,"structure_id":14894,"section_number":"38.2-5507","catch_line":"Hearings","url":"\/38.2-5507\/","token":"38.2\/55\/38.2-5507","metadata":false},{"id":61072,"structure_id":14894,"section_number":"38.2-5508","catch_line":"Confidentiality; prohibition on announcements; prohibition on use in ratemaking","url":"\/38.2-5508\/","token":"38.2\/55\/38.2-5508","metadata":false},{"id":67266,"structure_id":14894,"section_number":"38.2-5509","catch_line":"Supplemental provisions; rules; exemption","url":"\/38.2-5509\/","token":"38.2\/55\/38.2-5509","metadata":false},{"id":80850,"structure_id":14894,"section_number":"38.2-5510","catch_line":"Foreign licensees","url":"\/38.2-5510\/","token":"38.2\/55\/38.2-5510","metadata":false},{"id":61601,"structure_id":14894,"section_number":"38.2-5511","catch_line":"Immunity","url":"\/38.2-5511\/","token":"38.2\/55\/38.2-5511","metadata":false},{"id":56865,"structure_id":14894,"section_number":"38.2-5512","catch_line":"Repealed","url":"\/38.2-5512\/","token":"38.2\/55\/38.2-5512","metadata":false},{"id":83503,"structure_id":14894,"section_number":"38.2-5513","catch_line":"Notices","url":"\/38.2-5513\/","token":"38.2\/55\/38.2-5513","metadata":false},{"id":69834,"structure_id":14894,"section_number":"38.2-5514","catch_line":"Phase-in provision","url":"\/38.2-5514\/","token":"38.2\/55\/38.2-5514","metadata":false},{"id":67792,"structure_id":14894,"section_number":"38.2-5515","catch_line":"Expired","url":"\/38.2-5515\/","token":"38.2\/55\/38.2-5515","metadata":false}],"previous_section":{"id":68244,"structure_id":14894,"section_number":"38.2-5500","catch_line":"Applicability","url":"\/38.2-5500\/","token":"38.2\/55\/38.2-5500","metadata":false},"next_section":{"id":68713,"structure_id":14894,"section_number":"38.2-5502","catch_line":"RBC Reports","url":"\/38.2-5502\/","token":"38.2\/55\/38.2-5502","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-5501\/","history_text":"

This law was first created in 1995. The record of its establishment is cataloged in chapter 789<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 4 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2000, chapter 47<\/a>; in 2007, chapter 360<\/a>; in 2012, chapter 156<\/a>; in 2014, chapter 309<\/a>.<\/p>","references":false,"refers_to":[{"id":58285,"section_number":"38.2-1000","catch_line":"Incorporation of domestic stock insurers","order_by":null,"url":"\/38.2-1000\/"},{"id":56505,"section_number":"38.2-110","catch_line":"Fire","order_by":null,"url":"\/38.2-110\/"},{"id":81115,"section_number":"38.2-1300","catch_line":"Annual statements","order_by":null,"url":"\/38.2-1300\/"},{"id":60601,"section_number":"38.2-132","catch_line":"Commercial multi-peril insurance","order_by":null,"url":"\/38.2-132\/"},{"id":66658,"section_number":"38.2-1500","catch_line":"Scope of chapter","order_by":null,"url":"\/38.2-1500\/"},{"id":79636,"section_number":"38.2-4100","catch_line":"Fraternal benefit societies","order_by":null,"url":"\/38.2-4100\/"},{"id":78890,"section_number":"38.2-4200","catch_line":"Applicability of chapter","order_by":null,"url":"\/38.2-4200\/"},{"id":72005,"section_number":"38.2-4300","catch_line":"Definitions","order_by":null,"url":"\/38.2-4300\/"},{"id":59325,"section_number":"38.2-4500","catch_line":"Applicability of chapter","order_by":null,"url":"\/38.2-4500\/"},{"id":68713,"section_number":"38.2-5502","catch_line":"RBC Reports","order_by":null,"url":"\/38.2-5502\/"},{"id":72298,"section_number":"38.2-5503","catch_line":"Company Action Level Event","order_by":null,"url":"\/38.2-5503\/"},{"id":64365,"section_number":"38.2-6100","catch_line":"Applicability of chapter","order_by":null,"url":"\/38.2-6100\/"}],"permalink":{"id":217853,"object_type":"law","relational_id":67232,"identifier":"38.2-5501","token":"38.2\/55\/38.2-5501","url":"\/38.2-5501\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-5501\/","token":"38.2\/55\/38.2-5501","dublin_core":{"Title":"Definitions","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-5501","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

As used in this chapter, the following terms shall have the following meanings:\n\t\t“Adjusted RBC Report<\/span>” means an RBC report which has been adjusted by the Commission<\/span> in accordance with subsection F of \u00a7 38.2-5502<\/a>.\n\t\t“Capital and surplus<\/span>” or “capital,” except when used in the term “risk-based capital<\/span>” or “adjusted capital,” means net worth of a health maintenance organization and, for all other licensees<\/span>, means surplus to policyholders<\/span>.\n\t\t“Corrective Order<\/span>” means an order issued by the Commission<\/span> specifying corrective actions which the Commission<\/span> has determined are required.\n\t\t“Delinquency proceeding<\/span>” means any proceeding commenced against a licensee for the purpose of liquidating, rehabilitating, reorganizing or conserving a licensee pursuant to the provisions of Chapter 15 (\u00a7 38.2-1500<\/a> et seq.).\n\t\t“Domestic health organization<\/span>” means a health organization domiciled in this Commonwealth.\n\t\t“Domestic insurer<\/span>” means any domestic company<\/span> which has obtained a license to engage in insurance<\/span> transactions in this Commonwealth in accordance with the applicable provisions of Chapter 10 (\u00a7 38.2-1000<\/a> et seq.) or Chapter 41 (\u00a7 38.2-4100<\/a> et seq.).\n\t\t“Domestic licensee<\/span>” means and includes a domestic insurer<\/span> and a domestic health organization<\/span>.\n\t\t“Foreign health organization<\/span>” means a health organization not domiciled in this Commonwealth which is licensed to do business in this Commonwealth.\n\t\t“Foreign insurer<\/span>” means any company not domiciled in this Commonwealth which has obtained a license to engage in insurance<\/span> transactions in this Commonwealth in accordance with the applicable provisions in Chapter 10 (\u00a7 38.2-1000<\/a> et seq.) or Chapter 41 (\u00a7 38.2-4100<\/a> et seq.).\n\t\t“Foreign licensee<\/span>” means and includes a foreign insurer<\/span> and a foreign health organization<\/span>.\n\t\t“Health organization” means an insurer that is required by the Commission<\/span> to use the NAIC<\/span>’s Health Annual Statement blank when filing the annual statement prescribed by \u00a7 38.2-1300<\/a>, or a corporation licensed pursuant to Chapter 42 (\u00a7 38.2-4200<\/a> et seq.) operating a health or hospital services plan in the Commonwealth, or a health maintenance organization or limited health maintenance organization licensed pursuant to Chapter 43 (\u00a7 38.2-4300<\/a> et seq.), or a corporation licensed pursuant to Chapter 45 (\u00a7 38.2-4500<\/a> et seq.) and operating a dental or optometric services plan in the Commonwealth, or a dental plan organization licensed pursuant to Chapter 61 (\u00a7 38.2-6100<\/a> et seq.).\n\t\t“Licensee” means and includes a life and health insurer<\/span>, a property and casualty insurer<\/span>, and a health organization.\n\t\t“Life and health insurer<\/span>” means any domestic insurer<\/span> or foreign insurer<\/span>, whether known as a life insurer or a property and casualty insurer<\/span> or a reciprocal or a fraternal benefit society, which is authorized to write any class of life insurance<\/span>, annuities, or accident and sickness insurance<\/span>, and is not writing a class of insurance<\/span> set forth in \u00a7\u00a7 38.2-110<\/a> through 38.2-132<\/a>, provided that “life and health insurer<\/span>” shall not include any insurer which is required by the Commission<\/span> to use the NAIC<\/span>’s Health Annual Statement blank when filing the annual statement prescribed by \u00a7 38.2-1300<\/a>.\n\t\t“NAIC<\/span>” means the National Association of Insurance<\/span> Commissioners<\/span>.\n\t\t“Negative Trend,” with respect to a life and health insurer<\/span>, means a negative trend over a period of time, as determined in accordance with the “Trend Test Calculation<\/span>” included in the Life RBC Instructions<\/span>.\n\t\t“Property and casualty insurer<\/span>” means any domestic insurer<\/span> or foreign insurer<\/span> which is authorized under any chapter of this title to write any class of insurance<\/span> except a class of life insurance<\/span> or annuities, provided that “property and casualty insurer<\/span>” shall not include monoline mortgage guaranty insurers<\/span>, financial guaranty insurers<\/span> and title insurers<\/span>, nor shall it include any insurer which is required by the Commission<\/span> to use the NAIC<\/span>’s Health Annual Statement blank when filing the annual statement prescribed by \u00a7 38.2-1300<\/a>.\n\t\t“RBC” means risk-based capital<\/span>.\n\t\t“RBC Instructions<\/span>” means the RBC Report including risk-based capital<\/span> instructions adopted by the NAIC<\/span>, as such RBC Instructions<\/span> may be amended by the NAIC<\/span> from time to time in accordance with the procedures adopted by the NAIC<\/span>.\n\t\t“RBC Level<\/span>” means a licensee’s Company Action Level RBC, Regulatory Action Level RBC<\/span>, Authorized Control Level RBC<\/span>, or Mandatory Control Level RBC<\/span> where:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> “Company Action Level RBC” means, with respect to any licensee, the product of 2.0 and its Authorized Control Level RBC<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> “Regulatory Action Level RBC<\/span>” means the product of 1.5 and its Authorized Control Level RBC<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> “Authorized Control Level RBC<\/span>” means the number determined under the risk-based capital<\/span> formula in accordance with the RBC Instructions<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> “Mandatory Control Level RBC<\/span>” means the product of 0.70 and the Authorized Control Level RBC<\/span>.\n\t\t\t“RBC Plan<\/span>” means a comprehensive financial plan containing the elements specified in subsection B of § 38.2-5503<\/a>. If the Commission<\/span> rejects the RBC Plan<\/span>, and it is revised by the licensee, with or without the Commission<\/span>’s recommendation, the plan shall be called the “Revised RBC Plan<\/span>.”\n\t\t\t“RBC Report” means the report required in § 38.2-5502<\/a>.\n\t\t\t“Total Adjusted Capital<\/span>” means the sum of: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A licensee’s statutory capital and surplus<\/span> as determined in accordance with statutory accounting applicable to the annual financial statements required to be filed under § 38.2-1300<\/a>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Such other items, if any, as the RBC Instructions<\/span> may provide. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDEFINITIONS (\u00a7 38.2-5501)\n\nAs used in this chapter, the following terms shall have the following meanings:\n\t\t“Adjusted RBC Report” means an RBC report which has been adjusted\nby the Commission in accordance with subsection F of \u00a7 38.2-5502.\n\t\t“Capital and surplus” or “capital,” except when used\nin the term “risk-based capital” or “adjusted capital,”\nmeans net worth of a health maintenance organization and, for all other\nlicensees, means surplus to policyholders.\n\t\t“Corrective Order” means an order issued by the Commission\nspecifying corrective actions which the Commission has determined are required.\n\t\t“Delinquency proceeding” means any proceeding commenced against a\nlicensee for the purpose of liquidating, rehabilitating, reorganizing or\nconserving a licensee pursuant to the provisions of Chapter 15 (\u00a7 38.2-1500 et\nseq.).\n\t\t“Domestic health organization” means a health organization\ndomiciled in this Commonwealth.\n\t\t“Domestic insurer” means any domestic company which has obtained a\nlicense to engage in insurance transactions in this Commonwealth in accordance\nwith the applicable provisions of Chapter 10 (\u00a7 38.2-1000 et seq.) or Chapter\n41 (\u00a7 38.2-4100 et seq.).\n\t\t“Domestic licensee” means and includes a domestic insurer and a\ndomestic health organization.\n\t\t“Foreign health organization” means a health organization not\ndomiciled in this Commonwealth which is licensed to do business in this\nCommonwealth.\n\t\t“Foreign insurer” means any company not domiciled in this\nCommonwealth which has obtained a license to engage in insurance transactions in\nthis Commonwealth in accordance with the applicable provisions in Chapter 10 (\u00a7\n38.2-1000 et seq.) or Chapter 41 (\u00a7 38.2-4100 et seq.).\n\t\t“Foreign licensee” means and includes a foreign insurer and a\nforeign health organization.\n\t\t“Health organization” means an insurer that is required by the\nCommission to use the NAIC’s Health Annual Statement blank when filing the\nannual statement prescribed by \u00a7 38.2-1300, or a corporation licensed pursuant\nto Chapter 42 (\u00a7 38.2-4200 et seq.) operating a health or hospital services\nplan in the Commonwealth, or a health maintenance organization or limited health\nmaintenance organization licensed pursuant to Chapter 43 (\u00a7 38.2-4300 et seq.),\nor a corporation licensed pursuant to Chapter 45 (\u00a7 38.2-4500 et seq.) and\noperating a dental or optometric services plan in the Commonwealth, or a dental\nplan organization licensed pursuant to Chapter 61 (\u00a7 38.2-6100 et seq.).\n\t\t“Licensee” means and includes a life and health insurer, a\nproperty and casualty insurer, and a health organization.\n\t\t“Life and health insurer” means any domestic insurer or foreign\ninsurer, whether known as a life insurer or a property and casualty insurer or a\nreciprocal or a fraternal benefit society, which is authorized to write any\nclass of life insurance, annuities, or accident and sickness insurance, and is\nnot writing a class of insurance set forth in \u00a7\u00a7 38.2-110 through 38.2-132,\nprovided that “life and health insurer” shall not include any\ninsurer which is required by the Commission to use the NAIC’s Health\nAnnual Statement blank when filing the annual statement prescribed by \u00a7\n38.2-1300.\n\t\t“NAIC” means the National Association of Insurance Commissioners.\n\t\t“Negative Trend,” with respect to a life and health insurer, means\na negative trend over a period of time, as determined in accordance with the\n“Trend Test Calculation” included in the Life RBC Instructions.\n\t\t“Property and casualty insurer” means any domestic insurer or\nforeign insurer which is authorized under any chapter of this title to write any\nclass of insurance except a class of life insurance or annuities, provided that\n“property and casualty insurer” shall not include monoline mortgage\nguaranty insurers, financial guaranty insurers and title insurers, nor shall it\ninclude any insurer which is required by the Commission to use the NAIC’s\nHealth Annual Statement blank when filing the annual statement prescribed by \u00a7\n38.2-1300.\n\t\t“RBC” means risk-based capital.\n\t\t“RBC Instructions” means the RBC Report including risk-based\ncapital instructions adopted by the NAIC, as such RBC Instructions may be\namended by the NAIC from time to time in accordance with the procedures adopted\nby the NAIC.\n\t\t“RBC Level” means a licensee’s Company Action Level RBC,\nRegulatory Action Level RBC, Authorized Control Level RBC, or Mandatory Control\nLevel RBC where:\n\n1. “Company Action Level RBC” means, with respect to any licensee,\nthe product of 2.0 and its Authorized Control Level RBC;\n\n2. “Regulatory Action Level RBC” means the product of 1.5 and its\nAuthorized Control Level RBC;\n\n3. “Authorized Control Level RBC” means the number determined under\nthe risk-based capital formula in accordance with the RBC Instructions;\n\n4. “Mandatory Control Level RBC” means the product of 0.70 and the\nAuthorized Control Level RBC.\n\t\t\t“RBC Plan” means a comprehensive financial plan containing the\nelements specified in subsection B of § 38.2-5503. If the Commission\nrejects the RBC Plan, and it is revised by the licensee, with or without the\nCommission’s recommendation, the plan shall be called the “Revised\nRBC Plan.”\n\t\t\t“RBC Report” means the report required in § 38.2-5502.\n\t\t\t“Total Adjusted Capital” means the sum of:\n\n1. A licensee’s statutory capital and surplus as determined in accordance\nwith statutory accounting applicable to the annual financial statements required\nto be filed under § 38.2-1300; and\n\n2. Such other items, if any, as the RBC Instructions may provide.\n\nHISTORY: 1995, c. 789; 2000, c. 47; 2007, c. 360; 2012, c. 156; 2014, c. 309.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}