Terms Used In Delaware Code > Title 18 > Chapter 58 > Subchapter I - Risk-Based Capital (RBC) for Insurers

• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• Authorized Control Level RBC: means the number determined under the risk-based capital formula in accordance with the RBC Instructions;

  d. See Delaware Code Title 18 Sec. 5801

• Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. ^{Source: OCC}
• Bona fide association: means , with respect to health insurance coverage offered in Delaware, an association which:

  a. See Delaware Code Title 18 Sec. 3602

• Carrier: means an entity subject to the insurance laws and regulations of this State, or subject to the jurisdiction of the Commissioner, that contracts or offers to contract to provide, deliver, arrange for, pay for or reimburse any of the costs of health-care services, including a sickness and accident insurance company, a health maintenance organization, a nonprofit hospital and health service corporation or any other entity providing a plan of health insurance, health benefits or health services. See Delaware Code Title 18 Sec. 3602
• Child: means a person who has not reached the age of 18 years. See Delaware Code Title 1 Sec. 302
• Church plan: has the meaning given such term under § 3(33) of the Employee Retirement Income Security Act of 1974 [29 U. See Delaware Code Title 18 Sec. 3602
• Company Action Level RBC: means , with respect to any insurer, the product of 2. See Delaware Code Title 18 Sec. 5801
• Contract: A legal written agreement that becomes binding when signed.
• 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 issued by the Commissioner specifying corrective actions which the Commissioner has determined are required. See Delaware Code Title 18 Sec. 5801
• Creditable coverage: means , with respect to an individual, health benefits or coverage provided under any of the following:

  a. See Delaware Code Title 18 Sec. 3602

• Dependent: A person dependent for support upon another.
• Dependent: means a spouse, an enrollee's child by blood or law who is less than 26 years of age and an unmarried child of any age who is medically certified as totally disabled and dependent upon the enrollee. See Delaware Code Title 18 Sec. 3602
• Domestic insurer: means any insurance company domiciled in this State, except insurers not doing business with citizens or residents of the United States or organized or located within the United States. See Delaware Code Title 18 Sec. 5801
• 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 any insurance company which is licensed to do business in this State under § 516 of this title, but is not domiciled in this State. See Delaware Code Title 18 Sec. 5801
• Form: means policies, contracts, riders, endorsements and applications required to be filed with the Commissioner pursuant to §§ 2712 and 6306 of this title. See Delaware Code Title 18 Sec. 3602
• Fraud: Intentional deception resulting in injury to another.
• Governmental plan: has the meaning given such term under § 3(32) of the Employee Retirement Income Security Act of 1974 [29 U. See Delaware Code Title 18 Sec. 3602
• Health benefit plan: means any hospital or medical expense policy or certificate, major medical expense insurance policy or certificate, any hospital or medical service plan contract, health maintenance organization or health service corporation subscriber contract or any other similar health contract subject to the jurisdiction of the Commissioner. See Delaware Code Title 18 Sec. 3602
• Health insurance: means insurance permitted to be written in accordance with § 903 of this title, other than credit health insurance, and coverages written under Chapter 63 of this title, Health Service Corporations. See Delaware Code Title 18 Sec. 3602
• Health status-related factor: means any of the following factors:

  a. See Delaware Code Title 18 Sec. 3602

• 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.
• Mandatory Control Level RBC: means the product of . See Delaware Code Title 18 Sec. 5801
• Medical care: means amounts paid for:

  a. See Delaware Code Title 18 Sec. 3602

• Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
• NAIC: means the National Association of Insurance Commissioners. See Delaware Code Title 18 Sec. 5801
• Negative trend: means , with respect to a life and/or health insurer, negative trend over a period of time, as determined in accordance with the Trend Test Calculation included in the RBC Instructions. See Delaware Code Title 18 Sec. 5801
• Network plan: means health insurance coverage offered by a health carrier under which the financing and delivery of medical care including items and services paid for as medical care are provided, in whole or in part, through a defined set of providers under contract with the carrier. See Delaware Code Title 18 Sec. 3602
• Policy: means the entire contract between the insurer and the insured, including the policy riders, endorsements and the application, if attached, and also includes subscriber contracts issued by health service corporations. See Delaware Code Title 18 Sec. 3602
• Property and casualty insurer: means any insurance company licensed under § 516 of this title, but shall not include monoline mortgage guaranty insurers, financial guaranty insurers and title insurers. See Delaware Code Title 18 Sec. 5801
• RBC instructions: means the RBC report including risk-based capital instructions adopted by the NAIC; as such, RBC instructions may be amended by the NAIC from time to time in accordance with the procedures adopted by the NAIC. See Delaware Code Title 18 Sec. 5801
• RBC plan: means a comprehensive financial plan containing the elements specified in § 5803(b) of this title. See Delaware Code Title 18 Sec. 5801
• RBC report: means the report required in § 5802 of this title. See Delaware Code Title 18 Sec. 5801
• Regulatory Action Level RBC: means the product of 1. See Delaware Code Title 18 Sec. 5801
• Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
• Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
• State: means the State of Delaware; and when applied to different parts of the United States, it includes the District of Columbia and the several territories and possessions of the United States. See Delaware Code Title 1 Sec. 302
• Statute: A law passed by a legislature.
• Subpoena: A command to a witness to appear and give testimony.
• subsidiaries: shall include , in addition to those such corporations where the insurer owns a majority of their stock, those corporations formed or acquired by an insurer where it owns less than a majority of such corporation's voting stock due to the laws of a foreign national which require the insurer to own less than a majority of the voting stock of such subsidiary insurance corporation if it is to operate in that nation. See Delaware Code Title 18 Sec. 1313
• Testify: Answer questions in court.
• Total adjusted capital: means the sum of:

  a. See Delaware Code Title 18 Sec. 5801

• United States: includes its territories and possessions and the District of Columbia. See Delaware Code Title 1 Sec. 302
• Waiting period: means , with respect to an individual who is a potential participant or beneficiary in the plan, the period that must pass with respect to the individual before the individual is eligible for benefits under the terms of the plan. See Delaware Code Title 18 Sec. 3602
• Year: means a calendar year, and is equivalent to the words "year of our Lord. See Delaware Code Title 1 Sec. 302