Or. Admin. R. 410-141-5195

Current through Register Vol. 63, No. 6, June 1, 2024

Section 410-141-5195 - CAPITALIZATION: Risk-based Capital (RBC) Definitions

As used in OAR 410-141-5195 to 410-141-5220:

(1) "Authorized Control Level RBC" means the number determined under the risk-based capital formula in accordance with the RBC Instructions.

(2) "Company Action Level RBC" means, with respect to any CCO, the product of 2.0 (200%) and the CCO's Authorized Control Level RBC.

(3) "Corrective Order" means an order entered by the Authority under OAR 410-141-5310 to OAR 410-141-5320 specifying corrective actions the Authority determines are required of a CCO in respect of its Total Adjusted Capital and its RBC Level.

(4) "Mandatory Control Level RBC" means the product of .70 (70%) and the CCO's authorized control level RBC.

(5) "RBC Instructions" means the RBC Report form and including risk-based capital instructions adopted by the NAIC, as such form and instructions may be amended by the NAIC from time to time.

(6) "RBC Level" means a CCO's Company Action Level RBC, Regulatory Action Level RBC, Authorized Control Level RBC or Mandatory Control Level RBC.

(7) "RBC Plan" means a comprehensive financial plan containing the elements specified in OAR 410-141-5295 to 410-141-5320. If the Authority rejects the RBC Plan and it is revised by the CCO with or without the Authority's recommendation, the plan shall be called the "revised RBC Plan."

(8) "RBC Report" means the report required by OAR 410-141-5300.

(9) "Regulatory Action Level RBC" means the product of 1.5 (150%) and the CCO's Authorized Control Level RBC.

(10) "Total Adjusted Capital" means the sum of:

(a) A CCO's capital and surplus as determined in accordance with the statutory accounting applicable to the annual financial statements required to be filed under OAR 410-141-5015; and

(b) Such other items, if any, as the RBC instructions may provide.

Or. Admin. R. 410-141-5195

DMAP 59-2019, adopt filed 12/18/2019, effective 1/1/2020

Statutory/Other Authority: ORS 413.042, 414.615, 414.625, 414.635 & 414.651

Statutes/Other Implemented: ORS 414.610 - 414.685