Louisiana Revised Statutes 22:691.2 – Definitions
Terms Used In Louisiana Revised Statutes 22:691.2
- Affiliate: means a person that directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified. See Louisiana Revised Statutes 22:691.2
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Commissioner: means the commissioner of insurance, the commissioner's deputies, or the Department of Insurance, as appropriate. See Louisiana Revised Statutes 22:691.2
- 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.
- Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Source: OCC
- Group capital calculation instructions: means the group capital calculation instructions as adopted by the NAIC and as amended by the NAIC in accordance with the procedures adopted by the NAIC. See Louisiana Revised Statutes 22:691.2
- insurance holding company system: consists of two or more affiliated persons, one or more of which is an insurer. See Louisiana Revised Statutes 22:691.2
- Internationally active insurance group: means an insurance holding company system that:
(a) Includes an insurer registered pursuant to Louisiana Revised Statutes 22:691.2
- NAIC: means the National Association of Insurance Commissioners. See Louisiana Revised Statutes 22:691.2
- NAIC liquidity stress test framework: means the separate NAIC publication which includes a history of the NAIC's development of regulatory liquidity stress testing, the scope criteria applicable for a specific data year, and the liquidity stress test instructions and reporting templates for a specific data year, such scope criteria, instructions, and reporting template being as adopted by the NAIC and amended by the NAIC in accordance with the procedures adopted by the NAIC. See Louisiana Revised Statutes 22:691.2
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: means an individual, a corporation, a limited liability company, a partnership, an association, a joint stock company, a trust, an unincorporated organization, any similar entity or any combination of the foregoing acting in concert, but shall not include any joint venture partnership exclusively engaged in owning, managing, leasing, or developing immovable or corporeal movable property. See Louisiana Revised Statutes 22:691.2
- under common control with: means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. See Louisiana Revised Statutes 22:691.2
- Voting security: shall include any security convertible into or evidencing a right to acquire a voting security. See Louisiana Revised Statutes 22:691.2
As used in this Subpart, the following terms have the meanings ascribed in this Section unless the context clearly requires otherwise:
(1) “Affiliate” means a person that directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified.
(2) “Commissioner” means the commissioner of insurance, the commissioner’s deputies, or the Department of Insurance, as appropriate.
(3) “Control”, including the terms “controlling”, “controlled by”, and “under common control with”, means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. Control shall be presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing, ten percent or more of the voting securities of any other person. This presumption may be rebutted by a showing made in the manner provided by La. Rev. Stat. 22:691.4(E) and 691.6(K) that control does not exist in fact. The commissioner may determine that control exists in fact, notwithstanding the absence of a presumption to that effect.
(4) “Enterprise risk” means any activity, circumstance, event, or series of events involving one or more affiliates of an insurer that, if not remedied promptly, is likely to have a material adverse effect upon the financial condition or liquidity of the insurer or its insurance holding company system as a whole, including but not limited to anything that would cause the insurer’s risk-based capital to fall into company action level as set forth in La. Rev. Stat. 22:611 et seq., and 631 et seq., or would cause the insurer to be in hazardous financial condition.
(5) “Federal reserve” means the Board of Governors of the Federal Reserve System, as provided in 12 U.S.C. § 241.
(6) “Group capital calculation instructions” means the group capital calculation instructions as adopted by the NAIC and as amended by the NAIC in accordance with the procedures adopted by the NAIC.
(7) “Group-wide supervisor” means the regulatory official authorized to engage in conducting and coordinating group-wide supervision activities who is determined or acknowledged by the commissioner pursuant to La. Rev. Stat. 22:691.9.1 to have sufficient significant contacts with the internationally active insurance group.
(8) An “insurance holding company system” consists of two or more affiliated persons, one or more of which is an insurer.
(9) “Insurer” shall have the same meaning as set forth in La. Rev. Stat. 22:46(10). For the purposes of this Subpart, a health maintenance organization as defined La. Rev. Stat. 22:242(7) shall also be considered an insurer. The term “insurer” shall not include agencies, authorities, or instrumentalities of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state.
(10) “Internationally active insurance group” means an insurance holding company system that:
(a) Includes an insurer registered pursuant to La. Rev. Stat. 22:691.6.
(b) Meets the following criteria:
(i) Premiums are written in at least three countries.
(ii) The percentage of gross premiums written outside the United States is at least ten percent of the insurance holding company system’s total gross written premiums.
(iii) Based on a three-year rolling average, the total assets of the insurance holding company system are at least fifty billion dollars or the total gross written premiums of the insurance holding company system are at least ten billion dollars.
(11) “NAIC” means the National Association of Insurance Commissioners.
(12) “NAIC liquidity stress test framework” means the separate NAIC publication which includes a history of the NAIC’s development of regulatory liquidity stress testing, the scope criteria applicable for a specific data year, and the liquidity stress test instructions and reporting templates for a specific data year, such scope criteria, instructions, and reporting template being as adopted by the NAIC and amended by the NAIC in accordance with the procedures adopted by the NAIC.
(13) “Person” means an individual, a corporation, a limited liability company, a partnership, an association, a joint stock company, a trust, an unincorporated organization, any similar entity or any combination of the foregoing acting in concert, but shall not include any joint venture partnership exclusively engaged in owning, managing, leasing, or developing immovable or corporeal movable property.
(14) “Scope criteria” as detailed in the NAIC liquidity stress test framework means the designated exposure bases along with minimum magnitudes thereof for the specific data year, used to establish a preliminary list of insurers considered scoped into the NAIC liquidity stress test framework for that data year.
(15) A “securityholder” of a specified person is one who owns any security of such person, including common stock, preferred stock, debt obligations, and any other security convertible into or evidencing the right to acquire any of the foregoing.
(16) A “subsidiary” of a specified person is an affiliate controlled by such person directly or indirectly through one or more intermediaries.
(17) “Voting security” shall include any security convertible into or evidencing a right to acquire a voting security.
Acts 2012, No. 294, §1; Acts 2015, No. 196, §1, eff. Jan. 1, 2016; Acts 2022, No. 713, §1.