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As used in RCW 48.05.430 through *48.05.490, these terms have the following meanings:
(1) “RBC” means risk-based capital.
(2) “NAIC” means the national association of insurance commissioners.
(3) “Domestic insurer” means any insurance company domiciled in this state.
(4) “Foreign or alien insurer” means any insurance company that is licensed to do business in this state under this chapter but is not domiciled in this state.
(5) “Life and disability insurer” means any insurance company authorized to write only life insurance, disability insurance, or both, as defined in chapter 48.11 RCW.
(6) “Property and casualty insurer” means any insurance company authorized to write only property insurance, marine and transportation insurance, general casualty insurance, vehicle insurance, or any combination thereof, including disability insurance, as defined in chapter 48.11 RCW.
(7) “Corrective order” means an order issued by the commissioner specifying corrective actions that the commissioner has determined are required.
(8) “Negative trend” means, with respect to a life insurer, a disability insurer, or a life and disability insurer, the negative trend over a period of time, as determined in accordance with the trend test calculation included in the RBC instructions.
(9) “Adjusted RBC report” means an RBC report that has been adjusted by the commissioner in accordance with RCW 48.05.435(5).
(10) “RBC instructions” means the RBC report including risk-based capital instructions adopted by the NAIC.
(11) “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.
(12) “RBC plan” means a comprehensive financial plan containing the elements specified in RCW 48.05.440(2). 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.”
(13) “RBC report” means the report required in RCW 48.05.435.
(14) “Total adjusted capital” means the sum of:
(a) An insurer's statutory capital and surplus as determined in accordance with statutory accounting applicable to the annual financial statements required to be filed under RCW 48.05.250; and
(b) Other items, if any, as the RBC instructions may provide.
Cite this article: FindLaw.com - Washington Revised Code Title 48. Insurance § 48.05.430. Definitions - last updated April 06, 2022 | https://codes.findlaw.com/wa/title-48-insurance/wa-rev-code-48-05-430/
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