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Unannotated Code of Maryland (Last Updated: May 16, 2014) |
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INSURANCE |
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TITLE 4. GENERAL REQUIREMENTS FOR INSURERS |
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SUBTITLE 3. RISK BASED CAPITAL STANDARDS FOR INSURERS |
§ 4-301. Definitions
Latest version.
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(a) In general. -- In this subtitle the following words have the meanings indicated.
** SPECIAL REVISOR'S NOTE
Chapter 339, Acts of 1995, added this subsection.
(b) Adjusted RBC report. -- "Adjusted RBC report" means an RBC report that has been adjusted by the Commissioner in accordance with § 4-303(b) of this subtitle.
** SPECIAL REVISOR'S NOTE
Chapter 339, Acts of 1995, added this subsection.
** DEFINED TERMS:
"Commission" § 1-101
** DEFINED TERMS:
"RBC report" § 4-301
(c) Corrective order. -- "Corrective order" means an order issued by the
Commissioner that specifies corrective actions that the Commissioner has
determined are required.
** SPECIAL REVISOR'S NOTE
Chapter 339, Acts of 1995, added this subsection.
** DEFINED TERM:
"Commissioner" § 1-101
(d) Domestic insurer. --
(1) "Domestic insurer" means an insurer:
(i) as defined in subsection (h) of this section; and
(ii) that is formed under the laws of this State.
(2) "Domestic insurer" does not include the Maryland Automobile
Insurance Fund.
** SPECIAL REVISOR'S NOTE
Chapter 339, Acts of 1995, added this subsection.
(e) Filing date. -- "Filing date" means March 1 of any given year.
** SPECIAL REVISOR'S NOTE
Chapter 339, Acts of 1995, added this subsection.
(f) Foreign insurer. -- "Foreign insurer" means an insurer:
(1) as defined in subsection (h) of this section; and
(2) that is formed under the laws of a jurisdiction other than this
State.
** SPECIAL REVISOR'S NOTE
Chapter 339, Acts of 1995, added this subsection.
(f-1) Fraternal benefit society. -- "Fraternal benefit society" means a
person authorized to transact insurance business in the State under Title 8,
Subtitle 4 of this article.
(g) Health insurer. --
(1) "Health insurer" means an insurer that:
(i) is authorized to write health insurance in the State; and
(ii) receives the majority of its premium from the sale of health
insurance.
(2) "Health insurer" includes:
(i) a health maintenance organization operating under a certificate
of authority issued by the Commissioner under Title 19, Subtitle 7 of the
Health - General Article;
(ii) a nonprofit health service plan operating under Title 14,
Subtitle 1 of this article;
(iii) a dental plan operating under Title 14, Subtitle 4 of this
article; and
(iv) a provider-sponsored organization operating under Title 19,
Subtitle 7A of the Health - General Article.
(3) "Health insurer" does not include a managed care organization
operating under Title 15, Subtitle 1 of the Health - General Article.
** SPECIAL REVISOR'S NOTE
Chapter 339, Acts of 1995, added this subsection.
** DEFINED TERMS:
"Health insurance" § 1-101
** DEFINED TERMS:
"Insurer" § 1-101
** DEFINED TERMS:
"Life insurance" § 1-101
(h) Insurer. --
(1) "Insurer" means an insurer or other entity authorized to engage in
the insurance business in the State under a certificate of authority issued by
the Commissioner.
(2) "Insurer" includes:
(i) a health maintenance organization operating under a certificate
of authority issued by the Commissioner under Title 19, Subtitle 7 of the
Health - General Article;
(ii) a nonprofit health service plan operating under Title 14,
Subtitle 1 of this article;
(iii) a dental plan operating under Title 14, Subtitle 4 of this
article; and
(iv) a provider-sponsored organization operating under Title 19,
Subtitle 7A of the Health - General Article.
(3) "Insurer" does not include:
(i) monoline:
1. mortgage guaranty insurers;
2. financial guaranty insurers; or
3. title insurers; or
(ii) managed care organizations operating under Title 15, Subtitle 1
of the Health - General Article.
** SPECIAL REVISOR'S NOTE
Chapter 339, Acts of 1995, added this subsection.
(i) Life insurer. -- "Life insurer" means an insurer that:
(1) is authorized to write life insurance in the State; and
(2) receives the majority of its premium from the sale of life insurance.
** SPECIAL REVISOR'S NOTE
Chapter 339, Acts of 1995, added this subsection.
** DEFINED TERMS:
"Casualty insurance" § 1-101
** DEFINED TERMS:
"Insurer" § 1-101
** DEFINED TERMS:
"Property insurance" § 1-101
(j) NAIC. -- "NAIC" means the National Association of Insurance
Commissioners.
** SPECIAL REVISOR'S NOTE
Chapter 339, Acts of 1995, added this subsection.
** DEFINED TERMS:
"Life insurer" § 4-301
** DEFINED TERMS:
"RBC instructions" § 4-301
(k) Negative trend. -- "Negative trend" means, with respect to a life
insurer, health insurer, or fraternal benefit society, negative trend over a
period of time, as determined in accordance with the "trend test calculation"
included in the RBC instructions.
** SPECIAL REVISOR'S NOTE
Chapter 339, Acts of 1995, added this subsection.
** DEFINED TERMS:
"Insurer" § 1-101
** DEFINED TERMS:
"RBC instructions" § 4-301
(l) Property and casualty insurer. --
(1) "Property and casualty insurer" means an insurer that:
(i) is authorized to write property insurance or casualty insurance
in the State; and
(ii) receives the majority of its premium from the sale of property
insurance or casualty insurance.
(2) "Property and casualty insurer" does not include:
(i) a health maintenance organization operating under a certificate
of authority issued by the Commissioner under Title 19, Subtitle 7 of the
Health - General Article;
(ii) a nonprofit health service plan operating under Title 14,
Subtitle 1 of this article;
(iii) a dental plan operating under Title 14, Subtitle 4 of this
article;
(iv) a provider-sponsored organization operating under Title 19,
Subtitle 7A of the Health - General Article; or
(v) a managed care organization operating under Title 15, Subtitle 1
of the Health - General Article.
** SPECIAL REVISOR'S NOTE
Chapter 339, Acts of 1995, added this subsection.
** DEFINED TERM:
"NAIC" § 4-301
(m) RBC instructions. -- "RBC instructions" means the risk based capital
instructions developed and adopted by the NAIC.
** SPECIAL REVISOR'S NOTE
Chapter 339, Acts of 1995, added this subsection.
(n) RBC level. -- "RBC level" means an insurer's company action level RBC,
regulatory action level RBC, authorized control level RBC, or mandatory
control level RBC if:
** SPECIAL REVISOR'S NOTE
Chapter 339, Acts of 1995, added this subsection.
** DEFINED TERMS:
"Commissioner" § 1-101
** DEFINED TERMS:
"Domestic insurer" § 1-101 and 4-301
(1) "company action level RBC" means the product of 2.0 and the
authorized control level RBC;
(2) "regulatory action level RBC" means the product of 1.5 and the
authorized control level RBC;
(3) "authorized control level RBC" means the number determined under the
risk based capital formula in accordance with the RBC instructions; or
(4) "mandatory control level RBC" means the product of .70 and the
authorized control level RBC.
(o) RBC plan. -- "RBC plan" means a comprehensive financial plan that
contains the elements specified in § 4-305(b) of this subtitle.
** SPECIAL REVISOR'S NOTE
Chapter 339, Acts of 1995, added this subsection.
** DEFINED TERMS:
"Commissioner" § 1-101
** DEFINED TERMS:
"Insurer" § 1-101
** DEFINED TERMS:
"RBC plan" § 4-301
(p) RBC report. -- "RBC report" means a report prepared by a domestic
insurer and submitted to the Commissioner that details the domestic insurer's
RBC levels as of the end of the immediately preceding calendar year.
** SPECIAL REVISOR'S NOTE
Chapter 339, Acts of 1995, added this subsection.
** DEFINED TERMS:
"Insurer" § 1-101
** DEFINED TERMS:
"RBC instructions" § 4-301
**
(q) Revised RBC plan. -- "Revised RBC plan" means an RBC plan that has been: **
(1) rejected by the Commissioner; and **
(2) subsequently revised by the insurer, with or without the Commissioner's recommendation. **
(r) Total adjusted capital. -- "Total adjusted capital" means the sum of: **
(1) an insurer's statutory capital and surplus as determined in accordance with the statutory accounting principles applicable to the annual financial statements required to be filed under State law and regulations; and **
(2) any other items provided for in the RBC instructions.
HISTORY: An. Code 1957, art. 48A, § 739; 1995, ch. 339, § 2; 2000, ch. 331, § 2; 2011, ch. 65, § 5; 2013, ch. 385.