Session Law

Identifying Information:L. 2003 ch. 021
Other Identifying Information:2003 Senate Bill 26
Tax Type:Other
Brief Description:An Act concerning insurance; relating to risk-based capital requirements; amendingK.S.A. 2002 Supp. 40-2c01 and repealing the existing section.
Keywords:


Body:

CHAPTER 21

SENATE BILL No. 26

An Act concerning insurance; relating to risk-based capital requirements; amending

K.S.A. 2002 Supp. 40-2c01 and repealing the existing section.


Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 2002 Supp. 40-2c01 is hereby amended to read as

follows: 40-2c01. As used in this act:

(a) ``Adjusted RBC report'' means an RBC report which has been

adjusted by the commissioner in accordance with K.S.A. 40-2c04, and

amendments thereto.

(b) ``Corrective order'' means an order issued by the commissioner

specifying corrective actions which the commissioner has determined are

required to address a RBC level event.

(c) ``Domestic insurer'' means any insurance company or risk reten-

tion group which is licensed and organized in this state.

(d) ``Foreign insurer'' means any insurance company or risk retention

group not domiciled in this state which is licensed or registered to do

business in this state pursuant to article 41 of chapter 40 of the Kansas

Statutes Annotated or K.S.A. 40-209, and amendments thereto.

(e) ``NAIC'' means the national association of insurance commission-

ers.

(f) ``Life and health insurer'' means any insurance company licensed

under article 4 or 5 of chapter 40 of the Kansas Statutes Annotated or a

licensed property and casualty insurer writing only accident and health

insurance.

(g) ``Property and casualty insurer'' means any insurance company

licensed under articles 9, 10, 11, 12, 12a, 15 or 16 of chapter 40 of the

Kansas Statutes Annotated, but shall not include monoline mortgage

guaranty insurers, financial guaranty insurers and title insurers.

(h) ``Negative trend'' means, with respect to a life and health insurer,

a negative trend over a period of time, as determined in accordance with

the ``trend test calculation'' included in the RBC instructions defined in

subsection (j).

(i) ``RBC'' means risk-based capital.

(j) ``RBC instructions'' mean the risk-based capital instructions prom-

ulgated by the NAIC, which are in effect on December 31, 2001 2002.

(k) ``RBC level'' means an insurer's company action level RBC, reg-

ulatory action level RBC, authorized control level RBC, or mandatory

control level RBC where:

(1) ``Company action level RBC'' means, with respect to any insurer,

the product of 2.0 and its authorized control level RBC;

(2) ``regulatory action level RBC'' means the product of 1.5 and its

authorized control level RBC;

(3) ``authorized control level RBC'' means the number determined

under the risk-based capital formula in accordance with the RBC instruc-

tions; and

(4) ``mandatory control level RBC'' means the product of .70 and the

authorized control level RBC.

(l) ``RBC plan'' means a comprehensive financial plan containing the

elements specified in K.S.A. 40-2c06, and amendments thereto. 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.''

(m) ``RBC report'' means the report required by K.S.A. 40-2c02, and

amendments thereto.

(n) ``Total adjusted capital'' means the sum of:

(1) An insurer's capital and surplus or surplus only if a mutual insurer;

and

(2) such other items, if any, as the RBC instructions may provide.

(o) ``Commissioner'' means the commissioner of insurance.

Sec. 2. K.S.A. 2002 Supp. 40-2c01 is hereby repealed.

Sec. 3. This act shall take effect and be in force from and after its

publication in the statute book.

Approved March 26, 2002.


__________




Date Composed: 10/29/2003 Date Modified: 10/29/2003