Terms Used In Arizona Laws > Title 20 > Chapter 2 > Article 12 - Risk-Based Capital for Insurers

• Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• Authorized control level event: means any of the following events:

  (a) The filing of an RBC report by the insurer indicating that the insurer's total adjusted capital is more than or equal to its mandatory control level RBC but less than its authorized control level RBC. See Arizona Laws 20-488

• Company action level event: means any of the following:

  (a) The filing of an RBC report by an insurer indicating either that:

  (i) The insurer's total adjusted capital is more than or equal to its regulatory action level RBC but less than its company action level RBC. See Arizona Laws 20-488

• 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.
• Corrective order: means an order that is issued by the director and that specifies corrective actions that the director has determined are required. See Arizona Laws 20-488
• department: means the department of insurance and financial institutions. See Arizona Laws 20-101
• Domestic insurer: means a life or health insurer, or both, a property or casualty insurer, or both, or a health organization that is authorized to transact insurance business in this state and that is organized in this state. See Arizona Laws 20-488
• Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
• Foreign insurer: means a life or health insurer, or both, a property or casualty insurer, or both, or a health organization that is authorized to transact insurance business in this state but that is not domiciled in this state. See Arizona Laws 20-488
• Health organization: means a hospital service corporation, medical service corporation, dental service corporation or optometric service corporation or a hospital, medical, dental and optometric service corporation that has a certificate of authority pursuant to chapter 4, article 3 of this title, a prepaid dental plan organization that has a certificate of authority pursuant to chapter 4, article 7 of this title or a health care services organization that has a certificate of authority pursuant to chapter 4, article 9 of this title. See Arizona Laws 20-488
• including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
• Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. ^{Source: OCC}
• Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
• Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
• Life or health insurer: means an insurer authorized to transact life insurance, annuities or accident and health insurance in this state, a fraternal benefit society or an authorized property or casualty insurer writing only accident and health insurance, but does not include a health organization. See Arizona Laws 20-488
• Mandatory control level event: means any of the following:

  (a) The filing of an RBC report by the insurer indicating that the insurer's total adjusted capital is less than its mandatory control level RBC. See Arizona Laws 20-488

• Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
• Negative trend: means , with respect to an insurer, a negative trend over a period of time as determined in accordance with the trend test calculation included in the RBC instructions. See Arizona Laws 20-488
• Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
• Property: includes both real and personal property. See Arizona Laws 1-215
• Property or casualty insurer: means an insurer licensed to transact insurance as described in section 20-256 or 20-252, respectively, but does not include monoline mortgage guaranty insurers, financial guaranty insurers and title insurers. See Arizona Laws 20-488
• RBC: means risk-based capital. See Arizona Laws 20-488
• RBC instructions: means the RBC report, including risk-based capital instructions adopted by the national association of insurance commissioners. See Arizona Laws 20-488
• RBC plan: means a comprehensive financial plan containing the elements specified in Section 20-488. See Arizona Laws 20-488
• RBC report: means the report required under Section 20-488. See Arizona Laws 20-488
• Regulatory action level event: means , with respect to any insurer, any of the following events:

  (a) The filing of an RBC report by the insurer indicating that the insurer's total adjusted capital is more than or equal to its authorized control level RBC but less than its regulatory action level RBC. See Arizona Laws 20-488

• Subpoena: A command to a witness to appear and give testimony.
• Total adjusted capital: means the sum of:

  (a) An insurer's statutory capital and surplus. See Arizona Laws 20-488

• Writing: includes printing. See Arizona Laws 1-215