                                 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.