Kansas Statutes 40-2c05. Company action level event; defined
Terms Used In Kansas Statutes 40-2c05
- authorized control level RBC: means the number determined under the risk-based capital formula in accordance with the RBC instructions; and
(4) "mandatory control level RBC" means the product of 0. See Kansas Statutes 40-2c01
- Commissioner: means the commissioner of insurance. See Kansas Statutes 40-2c01
- Life and health insurer: means any insurance company licensed under article 4 or 5 ofchapter 40 of the Kansas Statutes Annotated, and amendments thereto, or a licensed property and casualty insurer writing only accident and health insurance. See Kansas Statutes 40-2c01
- 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). See Kansas Statutes 40-2c01
- Property and casualty insurer: means any insurance company licensed under articles 9, 10, 11, 12, 12a, 15 or 16 ofchapter 40 of the Kansas Statutes Annotated, and amendments thereto, but does not include monoline mortgage guaranty insurers, financial guaranty insurers and title insurers. See Kansas Statutes 40-2c01
- RBC: means risk-based capital. See Kansas Statutes 40-2c01
- RBC instructions: means the risk-based capital instructions promulgated by the NAIC that are in effect on December 31, 2022, or any later version promulgated by the NAIC as may be adopted by the commissioner under Kan. See Kansas Statutes 40-2c01
- RBC report: means the report required by Kan. See Kansas Statutes 40-2c01
- regulatory action level RBC: means the product of 1. See Kansas Statutes 40-2c01
- 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. See Kansas Statutes 40-2c01
- trend test calculation: include d in the RBC instructions defined in subsection (j). See Kansas Statutes 40-2c01
“Company action level event” means any of the following events:
(a) The filing of an RBC report by an insurer which indicates that:
(1) The insurer’s total adjusted capital is greater than or equal to its regulatory action level RBC but less than its company action level RBC; or
(2) (A) a life and health insurer has total adjusted capital which is greater than or equal to its company action level RBC but less than the product of its authorized control level RBC and 3.0 and has a negative trend; or
(B) a property and casualty insurer has total adjusted capital which is greater than or equal to its company action level RBC but less than the product of its authorized control level RBC and 3.0 and triggers the trend test calculation included in the RBC instructions as defined in Kan. Stat. Ann. § 40-2c01, and amendments thereto.
(b) The notification by the commissioner to the insurer of an adjusted RBC report that indicates the event described in subsection (a)(1) or (2), unless the insurer challenges the adjusted RBC report pursuant to Kan. Stat. Ann. § 40-2c19, and amendments thereto, and such challenge has not been rejected by the commissioner.