In this chapter, unless the context or subject matter otherwise requires:

Terms Used In North Dakota Code 26.1-03.2-01

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Organization: includes a foreign or domestic association, business trust, corporation, enterprise, estate, joint venture, limited liability company, limited liability partnership, limited partnership, partnership, trust, or any legal or commercial entity. See North Dakota Code 1-01-49
  • Property: includes property, real and personal. See North Dakota Code 1-01-49
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49

1.    “Adjusted risk-based capital report” means a risk-based capital report which has been adjusted by the commissioner in accordance with section 26.1-03.2-02.

2.    “Corrective order” means an order issued by the commissioner specifying corrective actions which the commissioner has determined are required.

3.    “Domestic health organization” means a health organization domiciled in this state.

4.    “Foreign health organization” means a health organization that is licensed to do business in this state but is not domiciled in this state.

5.    “Health organization” means a health maintenance organization, prepaid limited health service organization, nonprofit health service corporation, or other managed care organization licensed by the commissioner to do business in this state. “Health organization” does not include an organization that is licensed as either a life and health insurer or a property and casualty insurer that is otherwise subject to either the life or property and casualty risk-based capital requirements.

6.    “Risk-based capital instructions” means the risk-based capital report including risk-based capital instructions adopted by the national association of insurance commissioners, as these risk-based capital instructions may be amended by the national association of insurance commissioners from time to time in accordance with the procedures adopted by the national association of insurance commissioners.

7.    “Risk-based capital level” means a health organization’s company action level risk-based capital, regulatory action level risk-based capital, authorized control level risk-based capital, or mandatory control level risk-based capital and:

a.    “Authorized control level risk-based capital” means the number determined under the risk-based capital formula in accordance with the risk-based capital instructions.

b.    “Company action level risk-based capital” means, with respect to any health organization, the product of 2.0 and its authorized control level risk-based capital.

c.    “Mandatory control level risk-based capital” means the product of .70 and the authorized control level risk-based capital.

d.    “Regulatory action level risk-based capital” means the product of 1.5 and its authorized control level risk-based capital.

8.    “Risk-based capital plan” means a comprehensive financial plan containing the elements specified in subsection 2 of section 26.1-03.2-03. If the commissioner rejects the risk-based capital plan, and it is revised by the health organization, with or without the commissioner’s recommendation, the plan must be called the “revised risk-based capital plan”.

9.    “Risk-based capital report” means the report required in section 26.1-03.2-02.

10.    “Total adjusted capital” means the sum of:

a.    A health organization’s statutory capital and surplus, net worth, as determined in accordance with the statutory accounting applicable to the annual financial statements required to be filed under section 26.1-03-07 or, in the case of a health maintenance organization, section 26.1-18.1-08; and

b.    Such other items, if any, as the risk-based capital instructions may provide.