SENATE BILL No. 412
An Act concerning insurance; relating to risk-based capital
requirements; amending K.S.A.
1997 Supp. 40-2c01 and repealing the existing
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 1997 Supp. 40-2c01 is hereby amended to
follows: 40-2c01. As used in this act:
(a) ``Adjusted RBC report'' means an RBC report which has
adjusted by the commissioner in accordance with K.S.A. 1997
40-2c04, and amendments thereto.
(b) ``Corrective order'' means an order issued by the
specifying corrective actions which the commissioner has determined
required to address a RBC level event.
(c) ``Domestic insurer'' means any insurance company or risk
tion group which is licensed and organized in this state.
(d) ``Foreign insurer'' means any insurance company or risk
group not domiciled in this state which is licensed or registered
business in this state pursuant to article 41 of chapter 40 of the
Statutes Annotated or K.S.A. 40-209, and amendments thereto.
(e) ``NAIC'' means the national association of insurance
(f) ``Life and health insurer'' means any insurance company
under article 4 or 5 of chapter 40 of the Kansas Statutes Annotated
licensed property and casualty insurer writing only accident and
(g) ``Property and casualty insurer'' means any insurance
licensed under articles 9, 10, 11, 12, 12a, 15 or 16 of chapter 40
Kansas Statutes Annotated, but shall not include monoline
guaranty insurers, financial guaranty insurers and title
(h) ``Negative trend'' means, with respect to a life and
a negative trend over a period of time, as determined in accordance
the ``trend test calculation'' included in the RBC instructions
(i) ``RBC'' means risk-based capital.
(j) ``RBC instructions'' mean the RBC report including
capital instructions promulgated by the NAIC, which are in effect
1996 1997, and adopted as
rules and regulations by the
(k) ``RBC level'' means an insurer's company action level RBC,
ulatory action level RBC, authorized control level RBC, or
control level RBC where:
(1) ``Company action level RBC'' means, with respect to any
the product of 2.0 and its authorized control level RBC;
(2) ``regulatory action level RBC'' means the product of 1.5
authorized control level RBC;
(3) ``authorized control level RBC'' means the number
under the risk-based capital formula in accordance with the RBC
(4) ``mandatory control level RBC'' means the product of .70
authorized control level RBC.
(l) ``RBC plan'' means a comprehensive financial plan
elements specified in K.S.A. 1997 Supp. 40-2c06, and amendments
thereto. If the commissioner rejects the RBC plan, and it is
the insurer, with or without the commissioner's recommendation,
plan shall be called the ``revised RBC plan.''
(m) ``RBC report'' means the report required by K.S.A. 1997
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
(2) such other items, if any, as the RBC instructions may
(o) ``Commissioner'' means the commissioner of insurance.
Sec. 2. K.S.A. 1997 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 February 20, 1998