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.
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
(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-
(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
(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
(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-
(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
(n) ``Total adjusted capital'' means the sum of:
(1) An insurer's capital and surplus or surplus only if a mutual insurer;
(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