                                 CODE OF VIRGINIA

DEFINITIONS (§ 38.2-5501)

As used in this chapter, the following terms shall have the following meanings:
		&#8220;Adjusted RBC Report&#8221; means an RBC report which has been adjusted
by the Commission in accordance with subsection F of § 38.2-5502.
		&#8220;Capital and surplus&#8221; or &#8220;capital,&#8221; except when used
in the term &#8220;risk-based capital&#8221; or &#8220;adjusted capital,&#8221;
means net worth of a health maintenance organization and, for all other
licensees, means surplus to policyholders.
		&#8220;Corrective Order&#8221; means an order issued by the Commission
specifying corrective actions which the Commission has determined are required.
		&#8220;Delinquency proceeding&#8221; 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 (§ 38.2-1500 et
seq.).
		&#8220;Domestic health organization&#8221; means a health organization
domiciled in this Commonwealth.
		&#8220;Domestic insurer&#8221; 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 (§ 38.2-1000 et seq.) or Chapter
41 (§ 38.2-4100 et seq.).
		&#8220;Domestic licensee&#8221; means and includes a domestic insurer and a
domestic health organization.
		&#8220;Foreign health organization&#8221; means a health organization not
domiciled in this Commonwealth which is licensed to do business in this
Commonwealth.
		&#8220;Foreign insurer&#8221; 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 (§
38.2-1000 et seq.) or Chapter 41 (§ 38.2-4100 et seq.).
		&#8220;Foreign licensee&#8221; means and includes a foreign insurer and a
foreign health organization.
		&#8220;Health organization&#8221; means an insurer that is required by the
Commission to use the NAIC&#8217;s Health Annual Statement blank when filing the
annual statement prescribed by § 38.2-1300, or a corporation licensed pursuant
to Chapter 42 (§ 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 (§ 38.2-4300 et seq.),
or a corporation licensed pursuant to Chapter 45 (§ 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 (§ 38.2-6100 et seq.).
		&#8220;Licensee&#8221; means and includes a life and health insurer, a
property and casualty insurer, and a health organization.
		&#8220;Life and health insurer&#8221; 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 §§ 38.2-110 through 38.2-132,
provided that &#8220;life and health insurer&#8221; shall not include any
insurer which is required by the Commission to use the NAIC&#8217;s Health
Annual Statement blank when filing the annual statement prescribed by §
38.2-1300.
		&#8220;NAIC&#8221; means the National Association of Insurance Commissioners.
		&#8220;Negative Trend,&#8221; with respect to a life and health insurer, means
a negative trend over a period of time, as determined in accordance with the
&#8220;Trend Test Calculation&#8221; included in the Life RBC Instructions.
		&#8220;Property and casualty insurer&#8221; 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
&#8220;property and casualty insurer&#8221; 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&#8217;s
Health Annual Statement blank when filing the annual statement prescribed by §
38.2-1300.
		&#8220;RBC&#8221; means risk-based capital.
		&#8220;RBC Instructions&#8221; 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.
		&#8220;RBC Level&#8221; means a licensee&#8217;s Company Action Level RBC,
Regulatory Action Level RBC, Authorized Control Level RBC, or Mandatory Control
Level RBC where:

1. &#8220;Company Action Level RBC&#8221; means, with respect to any licensee,
the product of 2.0 and its Authorized Control Level RBC;

2. &#8220;Regulatory Action Level RBC&#8221; means the product of 1.5 and its
Authorized Control Level RBC;

3. &#8220;Authorized Control Level RBC&#8221; means the number determined under
the risk-based capital formula in accordance with the RBC Instructions;

4. &#8220;Mandatory Control Level RBC&#8221; means the product of 0.70 and the
Authorized Control Level RBC.
			&#8220;RBC Plan&#8221; means a comprehensive financial plan containing the
elements specified in subsection B of &#xA7; 38.2-5503. If the Commission
rejects the RBC Plan, and it is revised by the licensee, with or without the
Commission&#8217;s recommendation, the plan shall be called the &#8220;Revised
RBC Plan.&#8221;
			&#8220;RBC Report&#8221; means the report required in &#xA7; 38.2-5502.
			&#8220;Total Adjusted Capital&#8221; means the sum of:

1. A licensee&#8217;s statutory capital and surplus as determined in accordance
with statutory accounting applicable to the annual financial statements required
to be filed under &#xA7; 38.2-1300; and

2. Such other items, if any, as the RBC Instructions may provide.

HISTORY: 1995, c. 789; 2000, c. 47; 2007, c. 360; 2012, c. 156; 2014, c. 309.