SENATE BILL No. 74
An Act concerning insurance; relating to risk-based capital
requirements; amending K.S.A.
1998 Supp. 40-2c01 and repealing the existing
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 1998 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. 1998 Supp.
2c04, and amendments thereto.
(b) ``Corrective order'' means an order
issued by the commissioner
specifying corrective actions which the commissioner has determined
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
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 commission-
(f) ``Life and health insurer'' means any
insurance company licensed
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 company
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 health insurer,
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 risk-based
capital instructions promulgated by the NAIC, which are in effect
1997 1998, and adopted as
rules and regulations by the
(k) ``RBC level'' means an insurer's
company action level RBC, reg-
ulatory action level RBC, authorized control level RBC, or
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
(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. 1998 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. 1998 Supp.
40-2c02, and amendments thereto.
(n) ``Total adjusted capital'' means the
(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. 1998 Supp. 40-2c01 is hereby
Sec. 3. This act shall take effect and be in force
from and after its
publication in the statute book.
Approved March 29, 1999.